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Why Wheat trade is Important?
Wheat is an extremely important crop that is used to make flour and used on a large scale in making food products. It is also used in the cattle industry where cows are fed wheat. one of the most important commodities in the world. There is a lot of wheat trade done in the world every year. Global wheat production is around 740 million tons. Wheat is used in many ways around the world. It is used as food, as animal feed, in the production of beer, and many other everyday items.
How Russia-Ukraine War affected the trade?
Russia-Ukraine was started at the Feb end of this year disturbed the supply chain management of many food and crops. Russia and Ukraine are also the biggest wheat-producing countries in the world. But due to the war, many difficulties and restrictions were faced by the other countries regarding the import and export. Whereas this situation of war between them allows India to take the benefit of this opportunity.
India as a wheat exporter:
India is also one of the largest wheat-producing countries in the world. India's wheat exports rose to $1.74 billion in April-January 2021-22.
India is the second-largest wheat producer in the world with a share of 14.14 percent of the world’s total production.
India has entered many new countries for wheat export Yemen, Afghanistan, Qatar, and Indonesia,
The states in India that are the major wheat producers: are Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Rajasthan, Bihar, and Gujarat.
How did Egypt approve India as a Wheat supplier?
Russia and Ukraine used to be the biggest supplier of wheat to many countries but the situation of war has made it worse. Currently, it was revealed by the commerce minister Piyush Goyal that Egypt approve India as one of its wheat suppliers and is about to lift one million tonnes of wheat from India and out of which 240,000 tonnes will be shipped in April itself.
Egypt authorities sent their officials to check the fields and quarantine facilities in India. The teams visited wheat fields in Madhya Pradesh, UP, and Punjab to check the quality of wheat that is being produced in India.
Egypt imported wheat worth about USD 1.8 billion from Russia and USD 610.8 million from Ukraine in 2020.
As Egypt approves India as a wheat supplier, govt. Is looking for a way for facilitating for steady food supply. As the war situation has created a demand for Indian wheat with more pace in the world.
Many countries already import Indian wheat like Bangladesh, Nepal, the United Arab Emirates, Sri Lanka, Yemen, Afghanistan, Qatar, Indonesia, Oman, and Malaysia. India is entering more countries for the export of wheat.
This is a huge increase and it is an indication of the fact that people are looking for wheat. The Indian government has decided to step in and help the farmers of India reap good profits from this international war. The current price of Indian wheat is still the cheapest among all global competitors and due to Ukraine- Russia war, the Indian traders have a golden chance to increase their exports. The trader is estimating that the procurement this year is expected to be around 30-32 million tonnes.