Russia-Ukraine War: Why the sudden increase in the price of wheat, what is its connection with the war between Russia and Ukraine

Opportunity for India to increase wheat exports

Image Credit source: NewsNCR

Stock markets around the world including India Russia-Ukraine (Russia-Ukraine War), but the arhatiyas sitting in the Betul grain market of Madhya Pradesh are looking for opportunities in this disaster. Something very unexpected is happening here. The price of wheat increased by Rs 85 a quintal in the last 15 days. usually wheat (WheatAt the time of arrival of the new crop, the prices break, then how is this boom? Actually, there is a possibility that the wheat of India can see some new markets of the world this year. With the help of this, the hope of being twelve is tied. Now understand the market equation, about 200 million tonnes of wheat is exported worldwide. In this, the share of Russia and Ukraine is 50 to 60 million tonnes.

What is the connection between Russia and Ukraine war with wheat prices?

Russia is the world’s largest wheat exporter and Ukraine is the third wheat exporter. During 2021-22, exports are estimated to be 35 million tonnes from Russia and 24 million tonnes from Ukraine, but there is a possibility of supply disruption due to war between the two countries. If the supply stops from here, then if it increases from somewhere, then the opportunity will be with those countries which have enough stock.

1. India is the second largest producer of wheat. At present, India also has sufficient supply of wheat, which can prove to be helpful in increasing exports. Till February 1, a stock of 282 million tonnes of wheat has been recorded in the central pool of the country.
2. Apart from this, past stock is also lying with the market and the farmers. Yield is also estimated to exceed 110 million tonnes this year. The country’s own consumption remains around 105 million tonnes in a year, that is, even after meeting the domestic requirement, there will be enough wheat left for export.
3. Perhaps this is the reason why India is expected to export 7 million tonnes of wheat this year, out of which more than 5 million tonnes have already been exported till December.
4. There is also more potential for India in the export market of wheat. Among the countries to which Russia and Ukraine export wheat, many big buyers are in India’s neighbourhood.
5. Bangladesh imports about 7.5 million tonnes of wheat a year and has also increased procurement from India in recent times. Iran is also a big importer and buys most of the wheat from Russia. There too, the prospect has increased for India.
6. Apart from these, Pakistan and Sri Lanka are also big importers of Russian wheat and the market for Indian wheat may increase there too. That is, the export of wheat gives some hope in the horrific devastation of the war.

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