Nagpur: Following the export ban last week, traders and exporters in India’s wheat trade are waiting for policy clarity, causing local wheat prices to rebound to pre-ban levels.
ITC, Cargill and Viterra are big exporters of wheat from India. “The government’s move to restrict wheat exports to ensure equitable distribution to countries, particularly those vulnerable or in the neighborhood, is a judicious step to balance interests of all stakeholders,” an ITC spokesperson said.
A spokesperson from another large exporter stated, “There is hardly any buying or selling. Everyone is trying to hold on to their stocks.”
Domestic wheat prices have risen again due to a lack of supply. The price has fallen about 8% just after the government banned exports and smaller traders dumped their stocks. Prices have since recovered to pre-ban levels of about Rs 2,250-2,300 per quintal, about 5% above the minimum support price (MSP).
In terms of numbers, approximately 4.5 million tonnes (MT) of wheat were contracted for export in 2022-23, with 1.4 MT exported in April.
“With nearly 5 million tonnes already contracted by the overall industry,” the ITC spokesperson said, “this move will help calibrate additional exports in the months ahead and meet the complementary needs of domestic food security, exports, and farmer realisation.”