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

Video Video Claims to Show Shi'ite Forces in Iraq Executing Sunni Boy

While not yet independently confirmed, brutal killing already has gotten attention of Islamic State followers on social media More

After Six Years, Little Change for Niger Delta's Former Militants

Nigerians who laid down arms in exchange for government amnesty subsidies fear program may end with upcoming presidential elections More

Vietnam Pushes for More Educated Drivers to Curb Road Deaths

Transportation officials hope that making a greater effort to get drivers to learn the rules of the road will reduce fatal crashes 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.
Video Claims to Show Shia Forces in Iraq Executing Sunni Boyi
X
Jeff Seldin
March 05, 2015 2:36 AM
A graphic mobile phone video is spreading on the Internet, claiming to show Iraqi forces or Shia militia executing a handcuffed Sunni boy. Experts have yet to verify the video, but already Islamic State followers are publicizing it across social media, playing on deep-rooted sectarian fears. VOA’s Jeff Seldin reports.
Video

Video Video Claims to Show Shia Forces in Iraq Executing Sunni Boy

A graphic mobile phone video is spreading on the Internet, claiming to show Iraqi forces or Shia militia executing a handcuffed Sunni boy. Experts have yet to verify the video, but already Islamic State followers are publicizing it across social media, playing on deep-rooted sectarian fears. VOA’s Jeff Seldin reports.
Video

Video Ukrainian Authorities Struggle to Secure a Divided Mariupol

Since last month's cease-fire went into effect, shelling around the port city of Mariupol has decreased, but it is thought pro-Russian separatists remain poised to attack. For the city’s authorities, a major challenge is gaining the trust of residents, while at the same time rooting out informants who are passing sensitive information to the rebels. Patrick Wells reports for VOA.
Video

Video Volunteer Gauge-Watchers Help Fine-Tune Weather Science

An observation system called CoCoRaHS is working to improve weather science, thanks to thousands of volunteers across the country who measure precipitation in their own backyards, then share their data through the Internet. VOA's Shelley Schlender reports.
Video

Video NASA Spacecraft Approaches a Dwarf Planet

NASA’s Dawn spacecraft will make history on Friday, March 6, when it becomes the first man-made object to orbit a dwarf planet named Ceres. It is located in the asteroid belt between Mars and Jupiter, almost 500 million kilometers from Earth. Among other objectives, Dawn will try to examine two mysterious bright white spots detected on the planet’s surface. VOA’s George Putic has more.
Video

Video Young Muslims Radicalized Online

Young Muslims are being radicalized ‘in their bedrooms’ through direct contact with Islamic State or ISIL fighters via the Internet, according to terror experts. There are growing concerns that authorities and Internet providers are not doing enough to counter online extremism - which analysts say is spread by a prolific network of online supporters around the world. Henry Ridgwell reports from London.
Video

Video African Americans Recall 1960's Fight For Voting Rights

U.S. President Barack Obama and thousands of people will gather in the small southern U.S. city of Selma, Alabama, Saturday, March 7th to commemorate the 50th anniversary of a historic voting rights march that became known as “Bloody Sunday." VOA’s Chris Simkins traveled to Alabama and introduces us to some of the foot soldiers of the voting rights struggles of the 1960’s.
Video

Video Positive Messaging Transforms Ethiopia's Image

Ethiopia was once known for famine and droughts. Now, headlines more often point to its fast-growing economy and its emergence as a regional peacemaker. How has Addis Ababa changed the narrative? VOA's Marthe van der Wolf reports.
Video

Video Cyber War Rages Between Iran, US

A newly published report indicates Iran and the United States have increased their cyber attacks on each other, even as their top diplomats are working toward an agreement to guarantee Iran does not develop a nuclear weapon and to free Iran from international sanctions. The development is part of a growing global trend. VOA’s Al Pessin reports from London.
Video

Video Answers Elude Families of MH370 Passengers

For the families on board Malaysia Airlines flight MH370, an airline official’s statement nearly one year ago that the plane had lost contact with air traffic control at 2:40 AM is the only thing that remains confirmed. William Ide reports.

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More