CHANDIGARH: Russia and Ukraine account for nearly 40 per cent of the global wheat supply.
The war disrupted that supply.
This has resulted in an increase in demand for wheat from India. Being the largest wheat producing state in the country, Punjab might benefit from this.
Already, enquiries are being made by global food retail giants on the quantum of wheat they can buy from stakeholders here.
Talking to this daily, Punjab Roller Flour Mills Association president Naresh Ghai said, “The demand for wheat in the intentional market has increased due to the war between Russia and Ukraine. Wheat is bought at Rs 2,200 per quintal by private traders and when it reaches the Kandla port in Gujarat, it costs around Rs 2,400 per quintal. This time, there is demand from Bangladesh and Sri Lanka. Last year, around 70 lakh tonnes of wheat was exported from India.”
He claimed that currently, around 200 lakh tonnes of wheat is lying with the Indian government. Around 1,000-1,100 lakh tonnes is expected shortly as the new crop will be ready in a few days.
Ghai said demand from private traders this procurement season has been is good, but high taxation by the state government could become a deterrent.
So there is a chance of traders buying wheat from Uttar Pradesh, Madhya Pradesh and Gujarat due to low prices there.
“If the Punjab government wants to make profit through wheat export in the upcoming procurement season, it should reduce the taxes imposed on private players in the interest of farmers,” he said.
A few commission agents on condition of anonymity said that in the last week, there have been many queries from global food retail giants and food grain exporters like ITC, Adani Group, Cargill, and the Australian Wheat Board. Their representatives are in the state to assess the volume of wheat they can buy from here.
“The war has choked the global supply of wheat, pushing its price by over $11 a bushel,’’ they said.
Ravinder Singh Cheena, president of Arhtiya Association, Punjab, said the demand will be more this year.
“Last year, private traders bought 5-10 lakh metric tonnes of wheat from Punjab at Rs 1,925 per quintal. This year, they might buy around 20 lakh MT at more than Rs 2,000 per quintal. It depends on how long the war continues,” he said.