For the first time Turkey orders 50,000 tonnes of wheat from India

Turkey has for the first-time placed orders for 50,000 tonnes of wheat imports from India, joining Egypt. Turkey has begun the process of purchasing wheat through private electronic-mandi.

While this will benefit farmers in India, it will also drive-up wheat prices, which have already risen by up to 15 per cent in recent weeks. The unusual heatwave in March in India reduced wheat crop yield, contributing to price increases.

Moreover, wheat prices have risen because Indian wheat is in high demand in global markets after Ukraine’s exports were halted due to the Russia-Ukraine war. Ukraine produces about one-fifth of the world’s high-quality wheat and 7 percent of all wheat.

Due to the Russia-Ukraine conflict, private traders in India have purchased a large quantity of wheat from farmers at a price higher than the minimum support price. They’re creating an inventory anticipating good export orders from the global markets.

According to agriculture ministry sources, Turkey had agreed to import wheat from India last week. To facilitate the process, an Agricultural and Processed Food Products Export Development Authority (APEDA) delegation had visited the country.

Following this, electronic mandi AgriBazaar received a confirmed order from Turkey for the execution of 50,000 metric tonnes of wheat worth approximately Rs 125 crores. “Similar inquiries are currently being received and negotiated on our e-platform from Egypt, Indonesia, and other Middle Eastern countries said Amith Agarwal, CEO AgriBazaar.

Several countries have granted India market access as a result of the government’s efforts. Also, countries like Egypt, Israel, Oman, Nigeria, and South Africa, have already approached India about wheat imports.

Indian wheat exports increased to 7.215 million tonnes (MT) in 2021-22, up from 2.155 MT in the previous fiscal year. Its growth is expected to accelerate, with 4MT already contracted for the first quarter of FY 23. However, the production estimate has been reduced from 111.3 million tonnes to 105 million tonnes, with the government expecting to obtain half of its original estimate of 44.4 million tonnes. Unseasonal sharp temperature increase in mid-March, led to reduction of crop yield in the world’s second-largest grain producer.

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