AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,941 Increased By 63.6 (0.92%)
BR30 22,802 Increased By 233 (1.03%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)

MUMBAI: Indian wheat prices jumped to a record high, despite a ban on exports, amid strong demand and dwindling supply from a crop damaged by heatwave.

The price rally has reduced chances of India supplying substantial amounts of wheat under government-to-government deals with countries struggling to secure shipments amid the disruption of the war in Ukraine.

“Most of the farmers have sold their crop. Negligible supplies are coming up for sale even though demand is robust,” said Gopaldas Agarwal, a trader based at Indore in central India.

Local wheat prices jumped to a record 23,547 rupees per tonne on Wednesday.

That was up nearly 12% from recent lows that followed the government’s surprise ban on exports on May 14.

Supplies in grain markets were much lower this year than normal, showing that 2022 production had dropped far more than the government had estimated, said a Mumbai-based dealer with a global trading firm.

The “government’s estimate of 106.41 million tonnes is nowhere close to the reality. Supplies are suggesting production of around 95 million tonnes,” he said.

India tightens flour exports after global wheat shortage

The US Department of Agriculture’s Foreign Agricultural Service has pegged production at 99 million tonnes. India, the world’s second-biggest wheat producer, harvested 109.59 million tonnes in 2021.

The government estimated less output this year because of a heatwave in March and April. Lower supplies are also reflected in government wheat procurement, which so far this year is down 57% on the same period of 2021, at 18.8 million tonnes.

The government will have little stockpile to intervene in the market until the new-season supplies become available in March 2023, said a New Delhi based dealer with a global trading firm. “Supplies are tightening.

India may allow exports of (a) small quantity to Sri Lanka or Nepal, but large shipments are unlikely under government-to-government deals,“ the dealer said.

When New Delhi banned wheat exports, it said it would allow overseas shipments to countries that requested supplies “to meet their food security needs.”

India exported 3.5 million tonnes of wheat in the second quarter, mainly to Bangladesh, Nepal, Indonesia, the Philippines and Sri Lanka, up from 1.1 million tonnes a year earlier.

Comments

Comments are closed.