India looks to cash in on global wheat void post Ukraine war
The Hindu
While farmers stand to gain from exports amid a bumper harvest, food security campaigners urge caution
Russia and Ukraine account for about 25% of the world's wheat exports. However, Russia's invasion of Ukraine and the subsequent Western sanctions against Moscow have curtailed their wheat supplies drastically. As a result, many countries which were sourcing wheat mainly from these two nations are now in dire need of alternatives.
India, the largest wheat producer after China, is reported to be eyeing the void. The government plans to allow increased exports to cash in on the higher price of wheat in the international market.
Food security campaigners however, emphasise the need to prioritise local prices and ensure adequate supplies for domestic consumption before deciding on the quantum of exports.
While Russia and Ukraine exported 183 and 91 million tonnes (MT) of wheat, respectively, between 2017 and 2021, India exported a miniscule fraction of its output, or just 12.6 MT in the period. Five other countries accounted for the bulk of wheat exports in this period, including the European Union (157 MT), the U.S. (125 MT), Canada (112 MT) and Australia (83 MT).
India, which had the second-highest wheat supply (including production, existing stocks and imports) in this period — 613 million tonnes — exported only 2% of this, with about 80% used for domestic consumption, and the rest stored. In contrast, other leading exporters could sell big chunks of their supply. For instance, the U.S. exported 31% of its 404 MT of supply in the 2017-2021 period. Canada exported 60.5% of its 186 MT, while Australia exported 57% of its supply of 146 MT.
Many countries in Africa, West Asia and Southeast Asia rely heavily on Russian and Ukrainian wheat. Egypt, the biggest importer of wheat, sources 93% of its needs from the East European neighbours. Indonesia, the second-largest importer, has a 30% dependency on these two nations. African nations such as Sudan (80% reliance), Tanzania (64%), Libya (53%), Tunisia (52%), and West Asian countries including Lebanon (77% dependency), Yemen (50%) and U.A.E. (42%) are also highly dependent on supplies from the two neighnours now at war.
India is now focussing on exporting wheat to many of these nations, said Apeda (Agricultural and Processed Food Products Export Development Authority) chairman Dr. Madhaiyaan Angamuthu. "Our focus markets are Egypt, Turkey, Nigeria, Algeria, Middle East, Indonesia, Vietnam, Sri Lanka, Bangladesh, Thailand, Philippines, Morocco and Tanzania," he added.
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