With wheat production and stocks expected to touch new highs in the coming season, the government on Friday approved exports of 2.5 million tonnes (mt) of wheat and an additional 500,000 tonnes of wheat products.
Simultaneously, the government also permitted exports of 500,000 tonnes of sugar on top of the 1.5 mt allowed earlier.
The ban on wheat exports was lifted after a gap of more than three years while that on products was eased few months back. India had banned exports of wheat on May 13, 2022.
Wheat traders, meanwhile, were apprehensive as to whether any substantial exports could happen now as globally Indian wheat was quoting at around ₹2,536 per quintal ($280-290 per tonne and assuming an exchange rate of 90.59), while current domestic market price varied between ₹2,500 and ₹2,680 per quintal depending on the region where it was being sold. Globally, wheat was selling at $260-265 per tonne.
“Indian wheat is highly overpriced in the international markets as our minimum support price (MSP), which is fixed by the government, is quite high, making Indian wheat costlier than all competitors,” a senior industry official said.
