The rise in India’s wheat exports

In News 

India’s wheat exports in terms of volume rose by more than 527 per cent to 3.2 Million Tonne (MT) from 0.51 MT reported during April-October period of 2020-21.

• India’s cereals exports continue to surge notwithstanding disruption of global supplies because of COVID19 pandemic.

Why there is rise in India’s wheat exports?

• The rise in wheat exports has been achieved because of the Agricultural Products Exports Development Authority (APEDA) taking up various initiatives such as organizing B2B exhibitions in different countries, exploring new potential markets and initiating marketing campaigns with active involvement of Indian Embassies.
• It is giving thrust on building infrastructure in the value chain for giving boosts to cereal exports in collaboration with the state governments and other stakeholders such as exporters, farmer producer organizations, transporters etc.
• In March 2021, it organized its first Virtual Trade Fair – India Rice and Agro Commodity Show, where participation of wheat exporters was also organized. 
• A sensitization programme for wheat startups was organized to familiarize them about export opportunities.
• In order to ensure seamless quality certification of products to be exported, APEDA has recognized 220 labs across India to provide testing services for a wide range of products and exporters.

Present status of India’s wheat exports 

•  India is the second largest producer of wheat with a share of around 13.53 per cent of world total production. 
• India produces around 107.59 MT of wheat annually while a major chunk of it goes towards domestic consumption.
• Wheat exports have witnessed a 48.56 percent compounded annual growth rate (CAGR) during 2016-2020. 
  • The country’s wheat exports touched $ 243 million in 2020 against $ 50 million in 2016.
• In terms of value, India’s wheat exports in the current fiscal (April – October) rose by 546 per cent to $ 872 million from $ 135 million reported during the same period of the previous fiscal.
• In the current financial year (2021-22), India’s wheat exports is expected to achieve an all-time record high as it has already surpassed shipment of 2.09 MT achieved during 2020-21.
• India accounts for even less than one per cent in world wheat export. 
  • However, its share has increased from 0.14 per cent in 2016 to 0.54 per cent in 2020.
• Export destinations 
  • India’s wheat exports are mainly to neighbouring countries with Bangladesh having the largest share of more than 54 per cent in both volume and value terms in 2020-21.
  • In 2020-21, India entered new wheat markets such as Yemen, Afghanistan, Qatar and Indonesia.
    • The top ten importing countries for Indian wheat in 2020-21 are Bangladesh, Nepal, United Arab Emirates, Sri Lanka, Yemen, Afghanistan, Qatar, Indonesia, Oman and Malaysia
      • Top ten countries which accounted for more than 94 per cent of India’s wheat exports in 2016-17, now have 99 per cent share in exports in 2020-21 both volume and value terms.

Significance 

• Higher exports would help the india to bring down record inventories and provide Asian buyers with cheaper supplies amid a rally in global prices due to limited supplies from major exporters such as Russia and Canada.

Source:PIB