AI Insights

Will India be the New Wheat Bowl of the World?

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This post has been authored by Indu Dahiya, the Research Analyst Intern at Arthashastra Intelligence

Ukraine crisis

As we have talked about earlier in our article regarding the possible alteration in world trade due to Russia’s invasion of Ukraine and the crisis that follows, there is an opportunity for India to export wheat to the world market. Ukraine and Russia together supply nearly 30% of the world’s wheat and 12% of the world’s calories. With the crisis in Ukraine, farmers are not getting a proper supply of fertilizers, pesticides, herbicides, equipment, and above all fuel to power equipment. On the other hand, many countries have applied sanctions on Russia to punish it. The trade through the black sea region is disrupted a great deal. Countries like Lebanon, Egypt, and Yemen depend on these 2 countries for their supply of Wheat.

Rise in Price

The covid-19 crisis has already plunged the price of food around the globe, including basic commodities. This shock has increased global prices to 14 years high and it is expected to increase furthermore in the coming months. We can see that the food price index and cereal prices soared before the Ukraine crisis. India can take advantage of this rise in global prices.

An opportunity for India

India is the second-largest producer of wheat in the world after China and accounts for 13.5% of the world\’s production. India’s warehouses are full of excess wheat stock due to five consecutive years of a good harvest. It is estimated that about 21 million tons of wheat that are saved in the buffer stock of the government is wasted every year. But at the same time, India contributes less than 1% of world wheat exports. We can grab the opportunity which will be supported by harvest in April which is expected to be a record high at 111.32 million tons. India\’s central pool stood at 24.2 million tonnes, twice more than the buffer and strategic needs. This combined with the depreciation in the rupee will make it more appealing to foreign buyers. Many countries like Egypt, Isreal, Nigeria and Oman come to India to provide wheat supplies. Countries like Turkey, Sudan and Lebanon which used to rely on Ukraine and Russia are also looking for alternatives. This will also solve India’s An opportunity for India

India is the second-largest producer of wheat in the world after China and accounts for 13.5% of the world\’s production. India’s warehouses are full of excess wheat stock due to five consecutive years of a good harvest. It is estimated that about 21 million tons of wheat that are saved in the buffer stock of the government is wasted every year. But at the same time, India contributes less than 1% of world wheat exports. We can grab the opportunity which will be supported by harvest in April which is expected to be a record high at 111.32 million tons. India\’s central pool stood at 24.2 million tonnes, twice more than the buffer and strategic needs. This combined with the depreciation in the rupee will make it more appealing to foreign buyers. Many countries like Egypt, Isreal, Nigeria and Oman come to India to provide wheat supplies. Countries like Turkey, Sudan and Lebanon which used to rely on Ukraine and Russia are also looking for alternatives. This will also solve India’s.

An opportunity for India

India is the second-largest producer of wheat in the world after China and accounts for 13.5% of the world\’s production. India’s warehouses are full of excess wheat stock due to five consecutive years of a good harvest. It is estimated that about 21 million tons of wheat that are saved in the buffer stock of the government are wasted every year. But at the same time, India contributes less than 1% of world wheat exports. We can grab the opportunity which will be supported by harvest in April which is expected to be a record high at 111.32 million tons. India\’s central pool stood at 24.2 million tonnes, twice more than the buffer and strategic needs. This combined with the depreciation in the rupee will make it more appealing to foreign buyers. Many countries like Egypt, Isreal, Nigeria, and Oman come to India to provide wheat supplies. Countries like Turkey, Sudan, and Lebanon which used to rely on Ukraine and Russia are also looking for alternatives. This will also solve India’s

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