News / Asia

India Wheat Export Prices Rise

Anjana Pasricha
There could be a huge rise in wheat exports from India, as the country’s output is poised to touch a record high for a seventh year which could help stabilize global prices of wheat.
 
An unusually cold spell in northern India in December and January has been a boon for wheat shoots, and farmers are expected to harvest another bumper crop in the coming months.
 
While this is good news for farmers, the ample harvest could create a problem for the government, whose warehouses already are overflowing with stocks from previous years. Wheat stocks in the country are now more than 37 million tons - more than three times the target of 11 million tons.
 
A commodities analyst, Faiyaz Hudani, at Kotak Commodity Services in Mumbai, says the government will have to cut its massive stockpiles of wheat.  “The current crop is very good, the government has to buy this year also, so they have to first liquidate the old stock, so that they can get the space and procure the new crop,” Hudani said.
 
The government has announced that it will allow 2.5 million tons of wheat to be exported this year - a half-million tons more than last year. But the Food and Agriculture Organization estimates that exports could nearly double to 5 million tons.
 
Indian wheat is usually sold to buyers in the Middle East and Africa.  
 
India is the world’s second biggest wheat producer. It banned wheat exports in 2007, when world prices spiked sharply. But it allowed exports last year after it had to stockpile wheat in open fields following a several successive years of good harvests.  
 
India is looking at record production at a time when there has been a decline in several other wheat producing countries such as Australia.  Russia and Ukraine also could be looking at smaller crops because of drought.  
 
Commodity analysts say India’s re-entry into the export market will help stabilize world wheat prices. Hudani points out that buyers overseas know India has no option but to export its surplus.
 
“The world knows India has stocks; the world knows that India has a good crop this year, and the world also knows the government does not have space," Hudani explained. "In the current situation we will have to export and we will only be able to export at the current market price.”    
 
The government buys wheat from farmers every year to protect them from market fluctuations and to create a buffer stock for its 1 billion plus population. But it has faced heavy criticism for allowing food grains to rot because of inadequate storage facilities. Food experts often have urged the government to export surplus food grains or use them to feed poor people.

You May Like

Disappointing Report on China's Economy Shakes Markets

In London and New York shares lost 3 percent, while Paris and Germany dropped around 2.4 percent More

DRC Tries Mega-Farms to Feed Population

Park at Boukanga Lonzo currently has 5,000 hectares under cultivation, crops stretching as far as eye can see, and is start of ambitious large-scale agriculture plan More

Video War, Drought Threaten Iraq's Marshlands

Areas are spawning ground for Gulf fisheries, a resting place for migrating wildfowl, source of livelihood for fishermen and herders who have called the marshes home for generations More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Nobel Prize Winner Malala Talks to VOAi
X
August 31, 2015 2:17 AM
Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.
Video

Video Nobel Prize Winner Malala Talks to VOA

Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.
Video

Video War, Drought Threaten Iraq's Marshlands

Iraq's southern wetlands are in crisis. These areas are the spawning ground for Gulf fisheries, a resting place for migrating wildfowl, and source of livelihood for fishermen and herders. Faith Lapidus has more.
Video

Video Colombians Flee Venezuela as Border Crisis Escalates

Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Rebuilding New Orleans' Music Scene

Ten years after Hurricane Katrina inundated New Orleans, threatening to wash away its vibrant musical heritage along with its neighborhoods, the beat goes on. As Bronwyn Benito and Faith Lapidus report, a Musicians' Village is preserving the city's unique sound.
Video

Video In Russia, Auto Industry in Tailspin

Industry insiders say country relies too heavily on imports as inflation cuts too many consumers out of the market. Daniel Schearf has more from Moscow.
Video

Video Scientist Calls Use of Fetal Tissue in Medical Research Essential

An anti-abortion group responsible for secret recordings of workers at a women's health care organization claims the workers shown are offering baby parts for sale, a charge the organization strongly denies. While the selling of fetal tissue is against the law in the United States, abortion and the use of donated fetal tissue for medical research are both legal. VOA’s Julie Taboh reports.
Video

Video Next to Iran, Climate at Forefront of Obama Agenda

President Barack Obama this week announced new initiatives aimed at making it easier for Americans to access renewable energy sources such as solar and wind. Obama is not slowing down when it comes to pushing through climate change measures, an issue he says is the greatest threat to the country’s national security. VOA correspondent Aru Pande has more from the White House.
Video

Video Arctic Draws International Competition for Oil

A new geopolitical “Great Game” is underway in earth’s northernmost region, the Arctic, where Russia has claimed a large area for resource development and President Barack Obama recently approved Shell Oil Company’s test-drilling project in an area under U.S. control. Greg Flakus reports.
Video

Video Philippine Maritime Police: Chinese Fishermen a Threat to Country’s Security

China and the Philippines both claim maritime rights in the South China Sea.  That includes the right to fish in those waters. Jason Strother reports on how the Philippines is catching Chinese nationals it says are illegal poachers. He has the story from Palawan province.
Video

Video China's Spratly Island Building Said to Light Up the Night 'Like A City'

Southeast Asian countries claim China has illegally seized territory in the Spratly islands. It is especially a concern for a Philippine mayor who says Beijing is occupying parts of his municipality. Jason Strother reports from the capital of Palawan province, Puerto Princesa.
Video

Video Ages-old Ice Reveals Secrets of Climate Change

Ice caps don't just exist at the world's poles. There are also tropical ice caps, and the largest sits atop the Peruvian Andes - but it is melting, quickly, and may be gone within the next 20 years. George Putic reports scientists are now rushing to take samples to get at the valuable information about climate change locked in the ice.

VOA Blogs