Wheat exports

Wheat exports

What?

The Centre has set a target to export at least a million tonnes (mt) of wheat every month in 2022-23 as it wants the country to emerge as a reliable source of the grain both in “quantity and quality”.

Cause?

Ukraine war-The conflict-induced bottlenecks at Black Sea ports—where cargo vessels have been struck by Russian rockets—and other complications of the war have slammed Ukrainian exports.

The boycott of Russian ports by shipping companies and the knock-on effects of sanctions have also disrupted the flow of foods and feeds from Russia.

Trends?

• Wheat- 
  • China, EU and India are the top three largest wheat producers, accounting for about more than 41% of the world’s total wheat production.
  • The top five countries that exported the highest dollar-value worth of wheat include Russia > United States > Canada > France > Ukraine.
  • Russia is the 4th largest producer and largest exporter of wheat in the world and Egypt is the largest importer of wheat.
  • China and India are major wheat producers, but are net importers and provide relatively small shares of global wheat exports.
  • Russia and Ukraine account for 14% of global wheat production and rank 4th and 7th, respectively.
  • Russia and Ukraine account for nearly 30 percent of the global wheat supply and the halt in the black sea trade route due to the Ukraine war has disrupted the supply of wheat leading to massive rise in price i.e. a rise of 60%
  • Wheat prices are likely to remain elevated as inputs have gone up sharply with prices of fertilizers, fuel, seeds, insecticides and pesticides surging.
  • In Asia, only India has the exportable stocks of wheat and prospect of exporting wheat above the government mandated minimum support price.

Top Wheat Producing States: Uttar Pradesh > Punjab > Haryana>Madhya Pradesh > Rajasthan> Bihar>Gujarat