India resumes wheat exports for the first time in 4 years

Indian traders have started exporting wheat for the first time in four years as the country's large grain stocks, high world prices and stable freight rates have allowed them to sell small batches to buyers in Asia and the Middle East, Reuters reported, citing market sources.

Thus, according to traders, ITC has started loading 22,000 tons of wheat onto a ship at the port of Kandla for shipment to the United Arab Emirates. According to sources, the export agreement for the said batch was signed at a price of about $275/ton FOB.

However, it is not worth expecting a significant increase in wheat exports from India, as domestic prices have risen in recent days amid crop damage, making Indian wheat more expensive than wheat from Australia or the Black Sea region, which currently costs about $290-300/t (including insurance and freight). Therefore, prices for Indian wheat on world markets are at least $20/t higher than those of competitors.

Therefore, only buyers with immediate supply shortages are likely to buy wheat from India, the sources said. But those with sufficient stocks of Australian, Argentine or Black Sea wheat will not be interested in Indian wheat, given the relatively higher price. In this regard, it is expected that only importers with urgent, short-term needs and delivery capacity within 30-45 days are likely to buy Indian wheat.