The country’s wheat exports are set to touch record 7 million tonnes (mt) in the current fiscal, while the flare-up in global prices of the grain may further help to boost shipments, potentially easing pressure on the government procurement programme as domestic market prices are seen improving.

Total shipments from the country have already touched a record of 6.6 mt till end of February and may exceed 7 mt in FY 2021-22, Union Food Secretary Sudhanshu Pandey said on Saturday. Also, global prices are now ruling at around ₹24,000-25,000 a tonne, he added.

As against the government’s minimum support price of ₹20,150/tonne, the current mandi rates are hovering around Rs 21,000-24,000 per tonne in Gujarat where new crop has started arriving. Total arrivals in the State was 10,133 tonnes so far this month, of which 3,542 tonnes have arrived only in Junagarh district where mandi rates of Lokwan variety was selling at about ₹21,500/tonne. The arrivals will pick up after April 13 in all States including Punjab, Haryana, Madhya Pradesh and Uttar Pradesh.

The Centre is targeting to procure 44.4 million tonnes (mt) of wheat in 2022-23 season starting April 1 of an estimated production of 111.32 mt, which is about 40 per cent. Last year, the government had purchased 43.34 mt (or 39.5 per cent) out of 109.59 mt production.

It is an “opportunity” for Indian exporters when compared to other global wheat producers, Pandey said adding that the new wheat crop in the country will be available from March 15. Russia and Ukraine together account for almost a quarter of the global wheat supply and their crop will mature in August-September.

Open market sales

The Food Secretary also said that the government would continue the open market sales scheme (domestic) next year (2022-23) for which new policy has been announced. Apart from marginal increase in the rates, the government has also decided to add freight cost in 2022-23, which was removed for two consecutive years due to Covid.

The new OMSS rates, valid for April-September are ₹21,250/tonne for crop grown during 2019-20 (July-June), ₹21,750/tonne for 2020-21 crop, both up by ₹250 from the previous rate which is valid until March 31. For the new crop (2021-22 season), the price is fixed at ₹22,000/tonne. Also, the government has also raised these prices by ₹250/tonne, each for OMSS sales from October 1.

“We will have adequate stock of wheat and the new crop will also be available to private players for normal export,” Pandey said.

Sugar exports to rise

The Food Secretary also maintained that India’s sugar exports would jump to 7.5 mt in 2022-22 sugar season (October-September) against previous estimate of 6 mt as globally there is a push towards ethanol after the increase in crude prices limiting sugar production.

The demand for Indian sugar is rising because of tight supply of sweetener for export purposes, he said.

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