India signs deals to export 500,000 to export 500,000 T wheat, as global prices surge
- IBEF
- March 10, 2022
Traders claimed India has inked contracts to export over 500,000 tonnes of wheat in recent days, capitalising on a dramatic rise in international prices and signalling a significant increase in overseas sales from the world's second-largest wheat produce. Russia and Ukraine account for 30% of the global wheat exports. “Most suppliers have signed these deals at around US$ 340 a tonne free on board (FOB) to US$ 350 a tonne," said trader Rajesh Paharia Jain at Unicorp Pvt Ltd.
While benchmark European wheat prices soared above 400 euros (US$ 435) on Monday, and benchmark wheat prices in Chicago settled at their highest in 14 years, the country guarantees producers roughly $257 per tonne for domestic sales. India has massive wheat inventories after five consecutive record yearly yields, and traders are eager to take advantage of any export opportunities. This year, India is expected to export a record 7 million tonnes of wheat.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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