Overseas markets see rise in value of Indian wheat

NEW DELHI: Indian wheat particularly produced in Madhya Pradesh is high on demand in the international market, food ministry officials said. Beating the earlier trend when more and more Indian wheat was believed to be imported for animal feed in many countries now because of the good quality produce in MP, Punjab and Haryana are being used for human consumption.


Senior food ministry sources said that so far about 42.5 lakh tonnes in 2012-13 while the target set was 45 lakh tonnes. The main importers of grains are Korea, South Africa, Middle East, Bangladesh and a few European countries. Officials added that though June end was the deadline for meeting the export target soon government will export another 50,000 tonnes to mop up a tally of 43 lakh tonnes.

"The Indian wheat getting more takers because of better quality is also evident from the price at which we are exporting. When we invited tenders for the first time in 2012 keeping reserve price at $228 per tonne considering the global bad economic condition the minimum price quoted by importers was $296 per tonne," said a ministry official.

He added that when the second batch of tenders was out last December government had increased the reserve price to $300 per tonne. Though there were a few who quoted less most of the bidders offered better price. The weightage average price was approximately $311.38 per tonne. "Some of the bidders even quoted at $350 per tonne. MP wheat is has greater demand for its high protein content and all other indicators are close to the best international standard. Even major Indian companies prefer to buy MP wheat because of the quality. Even wheat from Punjab and Haryana is also of international quality," the official added.

India had banned wheat export in 2007, but in September 2011 the ban was lifted.

During current financial year, government plans to export another 20 lakh tonne wheat at reserved price of $300 per tonne. India is the world's second-largest wheat producer. It would soon resume exports after a gap of three months.

According to industry insiders, the depreciating Rupee may make Indian wheat more competitive in the world market.