Mumbai Commodities Control – Indian traders have signed two deals to export around 200,000 tn wheat to Bangladesh, market sources said. The traders are likely to be exporting wheat at $210-$220 per tn, free on board, and $250-$260 per tn, free on board, under the two deals.
The exports are expected to happen in a few days, traders said. Exporters believe more shipments will go to Bangladesh in this financial year as prices have weakened over the past few months.
The export price of Indian wheat has been falling as the domestic prices have weakened over the past few months. The average export price of Indian wheat is currently at $230-$240 per tn, free on board, against $300-$310 per tn last year.
The prices have softened over the past few months on account of the lukewarm bulk demand in domestic markets and a supply glut due to higher output, traders added.
In 2019-20 (Jul-Jun), India harvested a record 107.6 mln tn of wheat, nearly 4% higher on year.
Indian exporters have been exploiting more opportunities to export wheat to compensate for the poor domestic demand, traders said. During Apr-Oct, India's wheat exports were at 511,393 tn against 134,617 tn in the year ago period, according to the Agricultural and Processed Food Products Export Development Authority.
"The exports have risen due to anticipated food shortage amid COVID-19. But since many countries are exporting, Indian exporters have to sell the crop at lower prices to compete, and they will have to sell more quantity," an official with a multinational firm said.
Indian exporters have been looking for more opportunities to export the food grain to closer destinations such as Bangladesh, Sri Lanka, and other south and southeast Asian countries, as prices are still attractive, market participants said.
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