The Hindu Business Line : France looks to sell wheat, barley to India

“We exported 2.5-3 lakh tonnes of wheat to India in 2006. Exports are through private trade but in 2007, we couldn’t export as prices in the European market were high. This year, we are expecting a good crop and if prices are competitive, we will look to sell to India,” said Mr Francois Gatel, Director, France Export Cereals.

Mr Gatel was in Bangalore recently in connection with the international seminar on wheat and wheat products.

Last year, wheat production in France was 31 million tonnes (mt). With a 3.5 per cent rise in wheat acreage this year, production was expected to be 34-35 mt, he said. France accounts for 50 per cent of total European Union wheat exports and this year, it could have 6-7 mt for exports outside of the European Union.

However, on Wednesday, French arable crops office ONIGC said France would have 4.6 mt of wheat to spare for sale outside the European Union.

“We regularly export to Morocco, Algeria, Ivory Coast, Senegal and even China,” Mr Gatel said, adding that France had been given the impression that this year India would be self-sufficient in wheat.

Wheat prices have gained handsomely since 2007 beginning as weather and demand for gains in fuel production led to rise in consumption. The prices have nearly doubled, though this week they have shown a tendency to decline. On Wednesday, wheat was quoted at around Rs 15,000 a tonne against Rs 15,500 during the weekend in the global market. “We are willing to export to India depending on its needs,” Mr Gatel said. Besides, France also exports durum wheat, used in the manufacture of pasta and high quality milling products, to countries such as Algeria and Morocco.

France is also a significant exporter of both feed and malt barley. “We export barley to countries in the east, China and South America,” he said. Though India exported barley last year in view of higher global prices, it is seen a net importer in the longer term what with rising consumption of liquor, especially beer, due to changing food habits. France sees an opportunity for its farm products in view of the changing economic scenario in India.

“We are developing better varieties of malt barley. Right now, we may not be in a position to export barley to India but in the long-term, yes we are looking at the sub-continent,” Mr Gatel said.

One problem for France is that it has to compete with competitive origins such as Australia and Canada. “Our advantage is that there is scope for expanding production of farm production. Nearly 50 per cent of the area in our country is available for farming and we can certainly improve productivity,” he said.

France produced over 10 mt of barley annually and has about 50 per cent available for exports.

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