Egypt clears Indian wheat, trade negotiations on with more nations

Egypt, which has traditionally relied on cheap Ukrainian and Russian wheat supplies to meet domestic demand, approved Indian wheat varieties after a visiting delegation from that country toured Madhya Pradesh, Punjab and Maharashtra to ascertain quality, storage and other export parameters.

India, the world’s second-largest wheat producer, is currently in talks with various countries including Egypt, Turkey, China, Bosnia, Sudan, Nigeria, Iran for commencing wheat exports.

Egypt, the world’s top wheat importer, has approved India as a supplier to fill a sizeable void in the North African nation’s food stocks due to the Ukraine conflict, a move that will open up a lucrative market for Indian farmers and also deepen agricultural ties between the two countries, officials said on Friday.

India has accelerated efforts to export wheat shipments from its massive domestic stockpiles, amid a global shortage sparked by the war.

India, the world’s second-largest wheat producer, is currently in “discussion with various countries including Egypt, Turkey, China, Bosnia, Sudan, Nigeria, Iran, etc for commencing wheat exports,” an official said requesting anonymity.

New opportunities for farm exports are likely to push up India’s export earnings, which hit a record $418 billion ( ₹31.4 lakh crore) during 2021-22. Farmers are expected to reap higher prices, as analysts expect domestic grain prices to rise on the back of exports.

Egypt, which has traditionally relied on cheap Ukrainian and Russian wheat supplies to meet domestic demand, approved Indian wheat varieties after a visiting delegation from that country toured Madhya Pradesh, Punjab and Maharashtra to ascertain quality, storage and other export parameters. The two nations at war together account for up to 30% of global wheat exports and nearly 80% of Egypt’s imports.

On Friday, commerce minister Piyush Goyal tweeted: “Indian farmers are feeding the world. Egypt approves India as a wheat supplier. Prime Minister Narendra Modi’s government steps in as the world look for reliable alternate sources for a steady food supply. Our farmers have ensured our granaries overflow and we are ready to serve the world.”

India has stepped up efforts to seize a rare global opportunity to ramp up wheat shipments because international wheat prices are currently ruling higher than domestic minimum support prices.

“We are further targeting a US$ 300-400 million export revenue that will not only aid small scale farmers to garner better prices for their crop but also the central government in terms of income and reduction in forced procurement of certain commodities,” said Fauzan Alavi, director of Allana Group, India’s largest wheat exporter.

An official said quality standards were being stringently applied to food-testing laboratories. The railways and commerce ministry are working to ensure additional rail wagons to deliver to ports for speedy exports, he said. Port authorities have also been asked to accord priority to wheat shipments.

A food ministry official said India could export up to 10 million tonne depending on global demand.

The visiting Egyptian delegation of the general authority for supply commodities, agriculture and supply ministry examined wheat grain samples during their field visits. Egyptian Ambassador to India Wael Mohamed Awad Hamed accompanied the delegation, a second official said. The Egyptian team inspected Indian phytosanitary measures, which refers to safety of food stuff, before clearing India’s accreditation as a wheat-import origin country.

Hindustan Times

Tags: prices, wheat, India, stocks, импортер, producer, demand, Ukraine, Russia, Egypt, export