India’s record Wheat Export
This financial year, India is set to export around 7 million tonnes of wheat. This would be one of the highest exports of wheat by India.
India’s wheat exports
- India is the world’s second biggest producer of wheat, accounting for 13.53% of global production. But it only accounts for 1% of global wheat exports.
- Annually India produces around 108 million tonnes of wheat. However, majority of the production goes for domestic consumption.
- India exported a record 6.5 million tonnes in the financial year 2012-13. By the end of February 2022, India already exported 6.6 million tonnes of wheat.
Surge in wheat prices
- This week, benchmark wheat prices in Chicago increased by more than 40%. This is because of the fears of supply disruptions due to the sanctions imposed on Russia by western nations for invading Ukraine.
- Russia and Ukraine account for nearly quarter of global wheat exports and supply from these nations almost came to standstill due to Russia-Ukraine war.
- The supply disruption in the global market provides opportunity for India to increase its wheat exports. The surge in wheat prices also makes it lucrative for exporters of wheat. Stronger dollar vis-à-vis the rupee will also give boost to wheat exports from India.
Wheat exports to Afghanistan
Afghanistan is facing humanitarian crisis since the Taliban takeover in August 2021. To tackle the hunger crisis, India decided to export around 50,000 tonnes of wheat to Afghanistan. India has already sent 4,000 tonnes of wheat to Afghanistan through the land route via Pakistan.
Category: Economy & Banking Current Affairs - 2022
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