Mar 19:Amidst a record surge in wheat exports in the current fiscal, the Agricultural and Processed Food Products Export Development Authority (APEDA) recently organized a meeting of key stakeholders in the value chain for promoting exports to those countries which have a huge shipment potential.
The meeting, held on March 17, 2022, followed directions from the Ministry of Commerce & Industry to scale up shipments in order to alleviate any global supply chain disruptions in view of the geopolitical situation.
Thursday’s meeting was chaired by APEDA chairman Dr. M. Angamuthu and had the participation of key stakeholders such as traders, exporters, port officials, policy influencers from the Ministries of Food & Consumer Affairs, Railways, and officials from various State Governments.
At the meeting, the Railways assured to make available sufficient rakes to meet immediate demand for additional wheat transport. Port authorities have also been asked to augment dedicated terminals along with dedicated containers for wheat.
Given the bumper wheat production estimation, the APEDA has asked all stakeholders to strengthen its infrastructure for facilitating hassle-free wheat export.
The export of wheat recorded a huge surge at USD 1742 million during April-January 2021-22, growing 387 percent over the corresponding period in 2020-21 when it touched USD 340.17 million.
India has reported a wheat export worth USD 2352.22 million in the last three years, including the first ten months of the current fiscal 2021-22. In 2019-20, the wheat export was worth USD 61.84 million which rose to USD 549.67 million in 2020-21.
Though India is not among the top ten wheat exporters in the global trade, its rate of growth in exports has surpassed that of other countries, indicating the rapid strides it is taking in reaching new markets worldwide.
India is in final talks to start wheat export to Egypt, while discussions are going on with countries like Turkey, China, Bosnia, Sudan, Nigeria, Iran, etc to start wheat export.
India’s wheat exports are mainly to neighboring countries with Bangladesh having the largest share of more than 54 percent in both volume and value terms in 2020-21. In 2020-21, India entered new wheat markets such as Yemen, Afghanistan, Qatar, and Indonesia.
According to data by the Directorate General of Commercial Intelligence and Statistics (DGCIS), the top ten importing countries for Indian wheat in 2020-21 were Bangladesh, Nepal, United Arab Emirates, Sri Lanka, Yemen, Afghanistan, Qatar, Indonesia, Oman, and Malaysia. The top ten countries accounted for more than 99 percent share of India’s wheat exports in 2020-21 in both volume and value terms.
The rise in wheat exports has been achieved because of the APEDA taking up various initiatives such as organizing B2B exhibitions in different countries, exploring new potential markets, and initiating marketing campaigns with the active involvement of Indian Embassies.
“We are giving thrust on building infrastructure in the value chain for giving boosts to cereal exports in collaboration with the state governments and other stakeholders such as exporters, farmer producer organizations, transporters, etc,” said Dr. M. Angamuthu, Chairman, APEDA.
India accounts for even less than one percent of world wheat export. However, its share has increased from 0.14 percent in 2016 to 0.54 percent in 2020. India is the second-largest producer of wheat with a share of around 14.14 percent of world total production in 2020.
India produces around 107.59 Million MT of wheat annually while a major chunk of it goes towards domestic consumption. Major wheat-growing states in India are Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Rajasthan, Bihar, and Gujarat.
The unit price of wheat plays an important role in international trade. While the unit export price of wheat has increased for all countries in the last five years, India’s unit export price is slightly higher than that of other countries. This is one of the factors adversely impacting wheat exports from India.
APEDA has been focusing on facilitating shipments by Indian exporters and helping them make inroads into new markets. In order to ensure seamless quality certification of products to be exported, APEDA has recognized 220 labs across India to provide testing services for a wide range of products and exporters.
APEDA also assists in the up-gradation and strengthening of recognized laboratories for export testing and residue monitoring plans. APEDA also provides assistance under the financial assistance schemes of infrastructure development, quality improvement, and market development for boosting the export of agricultural products.
Table: Wheat export in last 3 years
Unit: USD Million
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