Grain: World Markets and Trade
January 16, 2013
India is seizing the opportunity to export record quantities of competitively priced wheat. As global exportable supplies tighten, particularly from Russia and Ukraine, India’s wheat is effectively replacing Black Sea wheat in several Middle East and East African countries. It is also replacing Australian wheat (milling and feed-quality) in Asian markets, and even displacing Turkish wheat flour in Indonesia.
Ironically, India had a wheat export ban prior to September 2011, but now it is saddled with burdensome stocks and inadequate storage facilities. The government is now permitting limited exports from its huge reserve stocks. Further export increases from India are expected to be constrained by transportation bottlenecks and limited port capacity. Full Story