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Indian Wheat exports may grow 23% at 8 million tonnes in 2013-14 marketing year

22 Feb 2013 Evaluate

India’s wheat exports are likely to grow by 23% year-on-year to 8 million tonne in 2013-14 marketing year on strong global prices and surplus domestic supply. During 2012 the country had shipped 6.5 million tonne wheat on which maximum stock exported from government godowns. Ban on wheat exports was lifted in September 2011, but shipments took off strongly only after August 2012.

Out of 8 million tonne wheat, 5 million tonne wheat will be from government side, while 3 million tonne will be sourced from open market by private traders. Indian wheat has been very price competitive in the global market due to the government allowed exports of wheat from its godowns.

According to the USDA, exports of government held stocks are likely to continue unabated this year due to tight storage facilities, while the government will be under tremendous pressure to clear stock to accommodate the new crop.

Current international prices are significantly higher than the domestic prices so the government is likely to continue to liquidate additional wheat stocks in the export market in 2013-14 and possibly 2014-15 also. However, any significant weakening of global wheat prices may adversely affect export prospects.

 

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