Reuters reported that ITC has already begun loading a shipment of 22,000 tons of wheat at the Kandla Port in the west of the country, heading to the United Arab Emirates. This measure represents India’s return to the international market after an export ban imposed in 2022 and extended by the government in 2023 and 2024 as a result of severe heat waves that depleted stocks and raised domestic prices to record levels.
The Indian government allowed the export of about 5 million tons of wheat early this year after restoring the stock balance, but the actual export remained faltering due to the high price of Indian wheat compared to other producers.
The outbreak of conflict in Iran and the impact of shipping lanes such as the Strait of Hormuz led to higher shipping costs from other regions, which prompted some buyers who need immediate shipments to turn to Indian wheat despite its relatively high price.
Analysts ruled out a major boom in Indian exports in the long term, given that Indian wheat prices are still higher by about $20 per ton compared to suppliers from Australia and the Black Sea region.
Current demand is expected to be limited to importers who face urgent supply gaps and need shipments within a period not exceeding 45 days, while other buyers prefer to wait to obtain more competitive prices from traditional global markets.
(Reuters)
