Will India emerge as a major global player in wheat just after Russia’s sanctions?

*Paromita Das

If India is successful in increasing its market share of wheat, it will play a significant role in ensuring global food security. New Delhi is already the largest rice exporter.

With the United States and the European Union imposing sanctions on Russia, wheat supplies have become uncertain, resulting in high prices. According to sources, several countries have already approached domestic exporters in India, though concrete agreements have yet to be signed.

“India’s wheat production is adequate to meet the needs of its own markets, which include a public distribution system for the poorer sections of the population.”

“There is enough stock to take care of the domestic market before moving on to exports,” Anil Monga, managing director of Emmsons International, which deals in agro product trading, told India Narrative.

More than 800 million people receive monthly foodgrain subsidies under the National Food Security Act.

Monga also stated that the Food Corporation of India has surplus stocks from previous years (FCI).

Farmers are expected to begin supplying produce to mandis by the end of the month. In the current fiscal year, India has already exported a record 7 million tons of wheat.

According to sources, the Center’s procurement of wheat is expected to be significantly lower in the new fiscal year, lowering the country’s food subsidy bill.

Meanwhile, India’s non-basmati rice exports are expected to reach 17 million tons this fiscal year (April to March), up from 13.06 million tons the previous fiscal year.

“Our non-basmati rice exports have increased, but basmati rice supplies have remained subdued due to a variety of issues, including logistics issues,” said Vinod Kaul, senior executive director of the All India Rice Exporters’ Association.

Rice exports from India have increased to countries such as China, Bangladesh, and several in Africa. Furthermore, 80 percent of Basmati rice is exported to West Asian countries. India has also exported 1.1 million tons of rice to China, primarily of the broken variety.

According to S&P Global, “Indian rice has risen from less than 1% of Chinese rice imports in 2020 to 23% so far in 2021, making it the largest supplier of rice to China.”