Global Wheat Flour Trade to Increase in 2022-23, Led by Iraq and Afghanistan.

Mumbai, April 26 (Commoditiescontrol): According to the International Grains Council (IGC), global wheat flour trade in 2022-23 has been revised up by 500,000 tonnes from its previous forecast of 14.3 million tonnes. However, this figure still falls short of the five-year average and historical peaks. Nevertheless, if this projection materializes, it would represent a 2% increase over the previous year, marking the second consecutive year of growth following the COVID-19 pandemic that started in 2020.

The IGC attributes the increase to larger deliveries to Asia, particularly to Iraq and Afghanistan, the world's largest wheat flour importers, with full-year arrivals estimated at 2.3 million tonnes and 2.2 million tonnes, respectively. This represents a combined increase of 700,000 tonnes for the two countries compared to the previous year. However, the IGC cautioned that the projection for Iraq had been scaled back due to an observed increase in grain wheat purchases.

The report states that sub-Saharan Africa's flour trade is projected to hit a multi-year low of 1.8 million tonnes, down from 2.3 million in 2021-22 due to volatile prices capping demand. Flour trade in South America is also expected to decline due to reduced availabilities in drought-stricken Argentina, the region's traditional supplier, with imports anticipated to decrease by 200,000 tonnes to 900,000. Turkey remains the largest exporter, with 5.04 million tonnes of flour projected to be shipped in 2022-23, an increase of over 600,000 tonnes from the previous year.

The IGC's initial projection for flour trade in 2023-24 is a slight decrease to 14.2 million tonnes, including declines in purchases by Afghanistan and Uzbekistan, based on larger local wheat availabilities in those countries and a contraction of supplies from Afghanistan. The report noted some expected recovery in purchases in South America and sub-Saharan Africa, which, however, hinges on product prices and economic conditions across the region.

(By Commoditiescontrol Bureau: +91-9820130172)