India might become a major wheat exporter due to Russia's invasion of Ukraine. The two Black Sea belt countries, at odds, have been vital commodity providers, accounting for approximately 30% of world supply. However, since the full-fledged fighting began on February 22, commercial activity in Ukrainian ports has halted, as have Russia's wheat supplies. Given the uncertainty, demand may transfer to India, according to Nitin Gupta, vice-president of Olam Agro India. This year, the country is set a record high of 7 million tons in exports.
The price of wheat is right.
India is the world's second-largest wheat producer, yet it barely accounts for 1% of global exports. The majority of its crop has traditionally been utilized in the United States. Due to high-yielding seed varieties, suitable agricultural mechanization, and ideal weather circumstances, India has built up extra wheat reserves to cover the gap left by Russia and Ukraine after a few years of bumper crops. Its granaries are presently bursting at the seams with more than 100 million tons of grain. Wheat prices have increased to a 14-year high, over $11 per bushel, allowing exports to be profitable.
Get today's or the latest prices for Wheat from different markets across India. These rates are from 1098 markets in different states. You can compare the rates of 46 different varieties of Wheat with markets from all over India. Common varieties of Wheat are: 147 Average, 147 Best, 1482, 2189 No. 1, 2189 No. 2, 2329, 343, Bansi, Chandausi, Coarse, Dara, Dara Mill Quality, Deshi, Farmi, H.D., Hybrid, Jawari, Kalyan, Kanak, Local, Lok-1, Lok -1 (Nilami Rate), Lokwan, Lokwan Gujrat, Lokwan MP No. 1, Maharashtra 2189, Medium, Medium Fine, Mexican, Milbar, Mill Quality, MP Lokwan, MP Sharbati, MP(Desi), Other, PISSI, Rajasthan Tukdi, Red, Sechor No. 1, Sharbati, Sona, Sonalika, Super Fine, Superior, WH-542, White etc.
As per the current market rates, maximum price of Wheat is 3900.00 INR/Quintal in Kalyan whereas the minimum rate is 1400.00 INR/Quintal in Anand across varieties. The average price is 2080.00 INR/Quintal across varieties.
Who's buying Indian wheat?
Philippines, Bangladesh, South Korea, Sri Lanka, and the United Arab Emirates are among the top purchasers of Indian wheat. Others, such as Lebanon, are looking to India. "As tensions rise, this becomes a matter of food security, and nations would be on the lookout for wheat imports," Biswajit Dhar, an economics professor at JNU, told the Mint daily. "The way things are going, the net food-importing countries will be driven to the brink." So importing from wherever it is accessible will be a top priority. India is a significant wheat exporter. Therefore, it will be in a good position."
What's stopping India from becoming a significant wheat exporter?
Having sufficient stocks is insufficient. According to Madan Sabnavis, chief economist of Bank of Baroda, India needs a long-term policy that allows easy international sales. In certain sections of the nation, traders and commission agents clamored for tax breaks to take advantage of the chance. In Punjab, for example, food retail heavyweights and food grain exporters such as ITC, Cargill, Adani Group, and the Australian Wheat Board have made inquiries. However, high taxes—3% each for the market fee and the rural development fund, 2.5 percent commission to agents, and 1 per cent service charges—could stifle demand.
How can Indian importers import wheat from Russia?
Despite a record increase in wheat exports this fiscal year and the difficult circumstances resulting from the Ukraine-Russia war, India is looking forward to expanding wheat exports outside its Asian and South Asian neighbors. Due to the Ministry of Commerce and Industry statement, wheat exports totaled $61.84 million in 2019-20, rising to $549.67 million in 2020-21. India is finalizing plans to begin wheat exports to Egypt, while talks with Turkey, China, Bosnia and Herzegovina, Sudan, Nigeria, Iran, and other nations are ongoing." Bangladesh accounts for the largest share of India's wheat exports in both volume and value terms in 2022-23, accounting for more than 54 percent in both volume and value terms. In addition, in 2022-23, India will enter new wheat markets such as Yemen, Afghanistan, Qatar, and Indonesia.
According to statistics from the Directorate General of Commercial Intelligence, Bangladesh, Nepal, the United Arab Emirates, Sri Lanka, Yemen, Afghanistan, Qatar, Indonesia, Oman, and Malaysia were the top ten importing nations for Indian wheat in 2022-23 Statistics (DGCIS). Given the expected bumper wheat crop, the APEDA - at a meeting called by M. Angamuthu, chairman of the APEDA - asked critical stakeholders in the value chain to promote exports to countries with considerable shipment potential, and all stakeholders to strengthen its infrastructure to facilitate hassle-free wheat export.
In light of the geopolitical scenario, the Ministry of Commerce and Industry has recommended increasing exports to avoid any global supply chain interruptions. Traders, exporters, port authorities, policy influencers from the Ministries of Food and Consumer Affairs, Railways, and officials from several state governments all attended the gathering. The Railways promised during the conference that they would make enough rakes available to accommodate an immediate need for increased wheat transport. Port officials have also requested specific terminals and dedicated wheat containers. India is responsible for less than 1% of global wheat exports. However, its market share has risen from 0.14 percent in 2016 to 0.54 percent in 2020. India is the world's second-largest wheat producer, accounting for 14.14 percent of global production.
Why importing wheat is profitable?
To stimulate consumption of domestically produced grain, the government raised the import tariff on wheat from 30% to 40%. The government's proposal to sell wheat on the open market to dump extra grain from the Food Corporation of India and state agencies prompted the decision, which was announced on Friday. According to a senior official, increasing tariffs have rendered wheat imports, notably cheaper grains from Russia, unprofitable for flour mills. When mills buy more from overseas, farmers' price for their produce falls. Last year, we were able to sell 7 million tonnes of wheat to millers through an open sale. We're likely to sell that much this year as well. "The tax increase would ensure that millers' wheat purchases benefit exclusively Indian farmers," the official told ET. If customs tax is not hiked, the government's open sale of wheat to millers and biscuit producers might be harmed, a flour miller remarked. The government have the plan to sell 10 million tonnes of wheat and 2 million tonnes of rice on the open market.
Wheat prices in the country are under pressure due to an overstock in the domestic market caused by the back-to-back bumper output of foodgrains. India is expected to produce 99.12 million tonnes of grain this year. Wheat was initially subjected to a 10% import tariff by the government. However, it boosted it to 20% in November, then increased to 30% in December to restrict imports.
India, the world's largest rice grower, for the first time in more than a quarter-century, is seeking to import the crop to feed its remote and hilly northeastern region, where a significant overhaul slows railway freight. According to government sources, the country would import approximately 100,000 tonnes of grain from Myanmar with the following tenders: 10,000 tonnes, 30,000 tonnes, and canned versions. In addition, according to authorities, grain from Bangladesh's Ashuganj port and grain from local reserves would be shipped to the northeast area. The imports and the distribution mechanism highlight the significant challenges India confronts in becoming a regional agricultural powerhouse. However, the figure is insufficient to cause a stir in the rice industry.
Since then, India has held the world's largest rice exporter, selling almost 10 million tonnes of rice year abroad. In the early 1990s, it used to import rice. The area is undergoing the first major renovation of the region's rail infrastructure since the British established rails there over a century ago. The railway gauge will be widened beginning in October and is expected to be completed by the end of the year. The experts predict that the operation will have the most significant impact on the states of Tripura, Parts, Manipur, and Mizoram of Assam, which traditionally receive the majority of their supplies from the northern plains of India. Rice is the region's primary food, with an estimated monthly consumption of 80,000 tonnes. Bringing the grain in from Bangladesh, which is only a few hundred kilometres from the cut-off points, is expected to be more cost-effective and less prone to delays than lugging it over 1,000 kilometres (621 miles) of mountain routes from regular supply facilities.
According to Reuters, India may import a record amount of wheat this year due to bad weather and low inventories. India has been experiencing drought conditions for this year's wheat harvest because of two straight lower-than-average monsoon years, and heat waves have contributed to the crop's stress. For a good harvest in India, adequate rainwater is required. In addition, the total quantity held by the Food Corporation of India (FCI), which buys and stockpiles the majority of the country's wheat output, has decreased each year.
India import wheat from Russia
An S&P Global Platts survey found that, despite the simmering Russia-Ukraine conflict, India's wheat harvest is predicted to increase to 110 million metric tons in the crop year 2021-22, up from 108 million metric tons a year earlier. If India's wheat exports increase, it will be able to compensate for lower supply forecasts from Ukraine and Russia, which account for more than 25% of the global wheat trade. Russia is the world's leading exporter of wheat. Ukraine is sixth in a row, and India is among the top ten wheat-exporting countries. "Disruption of shipments from these nations does give India a chance to expand our wheat exports," Commerce Minister Piyush Goyal told the Lok Sabha on Wednesday.
what specification is required to import wheat
Specification of Whole Wheat Flour
Moisture 11-11.5 %
The moisture content of the flour is important for two reasons. First, the higher the moisture content, the lower the amount of dry solids in the flour. Flour specifications usually limit the flour moisture to 14% or less. It is in the miller's interest to hold the moisture as close to 14% as possible.
Total Ash 1.3-1.5 % Max
As flour yield is increased, the amount of contamination with non-endosperm increases and the ash content increases. Thus, the ash content is a good and sensitive measure of the contamination of the endosperm. Millers will often comment that the ash does not affect the baking performance of flour.
Water Absorption 70% and above
Water absorption in wheat flour is also important for the process of precise breadmaking. In general, the water content in bread dough is around 65%. When the water content is lower than optimal, the mixing time will increase.
Gluten 9-10%
Gluten is a protein naturally found in some grains including wheat, barley, and rye. It acts like a binder, holding food together and adding a “stretchy” quality—think of a pizza maker tossing and stretching out a ball of dough. Without gluten, the dough would rip easily.
Crude Fiber 2.3-2.5%
Why is crude fiber important?
Crude fiber is important in the diets of ruminant animals, which can ferment a large portion of it. Crude fiber is described in detail below. Crude fiber measures fermentable components of the feed. Crude fiber has little energy value but is important for gut health in pigs and poultry.
Alcoholic Acidity 0.08% max
Higher alcoholic acidity is an indicator of higher acidity of the germ oil in the flour. As per FSS Regulations, alcoholic acidity in wheat flour shall not be more than 0.18 per cent by weight; as per Indian Standard, it shall not be more than 0.1 per cent.
Acid Insoluble Ash 0.08-0.1% max
Acid-insoluble ash consists primarily of silica and silicates. This material, when present in the finished paper or paperboard, can have an abrasive effect on punches, knives, slitters and dies which come into contact with paper during finishing operations.
Protein 11-12%
Wheat protein content is an important consideration in baking and in the production of pasta and noodles. All other factors being equal, higher-protein wheat has higher water-absorbing capacity and greater loaf volume potential and is reported to have better keeping quality.
Carbohydrates 73.0 gms
Carbs are the main nutritional component of wheat. Still, this grain harbors significant amounts of fiber, which may aid your digestion. Its protein mostly comes in the form of gluten
Fats 1.70 gms
In addition to being a major source of starch and energy, wheat also provides substantial amounts of a number of components which are essential or beneficial for health, notably protein, vitamins (notably B vitamins), dietary fiber, and phytochemicals.
Fibers 11.0 gms
Insoluble Fiber is found in whole grains, such as wheat, rye, and brown rice as well as in many vegetables and is known for promoting regular bowel movements and reducing the risk for diverticulitis.
Minerals 1.80 gms
Whole wheat flour is richer in minerals and vitamins than white flour. Your body needs minerals for: Regulating enzyme systems. Building bones and teeth.
How to Package Wheat for Long Term Storage
Wheat should be stored in an airtight container to avoid moisture and air contamination. It's also a good idea to use a dependable strategy to safeguard the wheat against insect infestation.
Good Containers for Packaging Wheat for Storage
When wheat berries are packaged properly, they can have a long shelf life. Although certain containers are better than others for preserving wheat berries, any of these containers can be used.
Storing Wheat
Wheat is an essential component of any emergency food source. A year's worth of food for an adult is around 150 pounds. A three-week emergency stockpile for an adult weight about 5-10 lbs. Children under the age of eight would require half of that amount. Wheat is classified into different commercial classes depending on color, kernel hardness, and growing season. Hard wheat varieties are grown in locations with a dry-temperate environment. The kernels are typically tiny, reddish-brown in color, and have a firm texture. The white wheat classes are often grown in places with moderate winters and enough of precipitation. White wheat kernels are plumper and bigger than red wheat kernels, and their texture is softer than hard wheat. Wheat "berries" are another name for wheat kernels. Gluten is a wheat protein that allows flours to hold the gases created by bread yeast, allowing dough to rise. Hard red wheat cultivars have a high gluten content, making them ideal for bread flour. Gluten degrades with storage, and after many years, it loses half of its elevating effect. Gluten may be purchased and added to low-quality flour to make higher-quality bread.
Quality and Purchase
A grower can provide you with whole wheat berries (farmer). Almost all of these grains haven't been washed and have been bulk kept for months. A grain processor can also be used to acquire grains. They may have been cleaned and packed in this case. Do not buy "seed" wheat for storage since it may have been treated with hazardous chemicals. Finally, grains can be washed and packed and purchased through a store.
Packaging
Wheat should be stored in moisture-resistant, food-grade containers such Mylar bags, polyethylene bags, plastic buckets, or #10 cans. It's important to remember that rats may nibble through plastic bags. Wheat kept in 10-pound bags is simple to handle, rotates easily, provides for easy observation of the grain, and compartmentalizes the grain so that contamination of one lot does not affect vast amounts of stored grain. A 5-gallon plastic bucket may accommodate several bags. Unless insects are present, it is not required to preserve wheat in the absence of oxygen.
Storage Conditions
Most grains should be kept around 40-60°F, however this is normally impracticable in most households unless during the winter months. Freezing or sub-zero temperatures have no effect on grains that have been kept. Seed viability (ability to germinate) declines more quickly at temperatures over 60°F, although food value declines only slightly quicker. Mold development and chemical deterioration of all grains are encouraged by moisture levels more than 12 percent (barley, corn, millets, oats, rice, rye, sorghum, triticale, and wheat). More over 12% moisture levels may cause grains to begin to respire, resulting in chemical deterioration. Mold will develop if there is more than 15% moisture in the air. Bacteria might begin to proliferate when the moisture level hits 20%. As a result, the grain has deteriorated and is no longer appropriate for consumption. Containers should be kept off the ground, especially concrete floors. Concrete may easily transfer moisture into storage containers. Inspect grain for insect activity on a regular basis.
First, as a startup, we need to provide our products specification for Wheat as follows
Quality 12.5% Protein Milling Wheat
Protein: min. 12.5% (N x 5,7 dry matter)
(minimum 12% for GASC)
Specific Weight: min. 77 kg/hl
Gluten: min. 25% (ISO 21415-1)
Falling Number Hagberg: min. 250 sec
Moisture: max. 14%
Foreign Matter: max. 2%
Bug Damage: max. 1%
Moreover, we would also ask them for SGS Inspection Quality Parameters based on the Quality of Wheat demanded by the Buyer
Specification/ Russia => Min = Average = Max.
Protein (dry matter basis) => 9.5% = 13% = 18%
Moisture => % 9% = 12.5% = 20%
Test Weight (kg/hl) => 66.5 = 77.8 = 80
Foreign matter => 0.17% 0.77% 7 %
Bug damage=> % 0.2% = 0.84% = 5%
Falling Number/Hagberg (seconds)=> 60 = 346 = 490
Gluten,ISO 21415-2=> 13% = 26% = 38%
Clarification needed from Supplier
Q. What would be the acceptable shipment terms? INCOTERMS Pref. CIF & FAS
Q. What would be the MOQ?
Q. Kindly provide us with the container/breakbulk vessel specification with a total number of bags per unit per bags packaging
Q. Is OEM / PVT Lable of packaging possible?
Q. What would be acceptable payment terms for you? Pref. Irrevocable LC at sight
Q. Do we need to enter into a legal agreement before a deal to fix a price?
Q. List of Documentations Required
Docs
Invoice
Packing List
Certificate of Origin
Phytosanitary Certificate
SGS Lab report
Insurance ICC Cover A, Covering all risk of 110% Invoice Value.
On-Board BL or RFS BL based on the need of your buyer / Cross Border Trade, we neet to confirm before every deal.
While Sourcing Wheat from Mosco make sure you focus more on Protein and Gluten levels.
1st class = 14.5 protein / 32 % wet gluten
2nd class = 13.5 protein / 28 % wet gluten.
3rd class = 12.5 protein / 23 % wet gluten.
4th class =. 11 protein / 18 % wet gluten.
5th class = Feed wheat for animals. No min protein/gluten
Cordially yours,
Kishan Barai