India Continues To Import Wheat Despite Record Domestic Output

NEW DELHI (Commoditiescontrol) – India will be importing wheat this year despite a record domestic production in the last crop year 2016-17 (July-June) following which plentiful supply of grain is seen in the country in the ongoing marketing year 2017-18 because imported wheat costs cheaper than domestic crop for the port town millers.



However, the volume of imports will be lower than last year. The total imports of wheat were at 57.5 lakh tonens last year as domestic supply was weak, The government had to reduce import duty on wheat firstly 25 percent to 10 percent then zero in a bid to increase the supply of grain in the physical market and check the price hike. The USDA has projection India’s wheat imports at 40 lakh tonnes in 2017-18.

As per the market sources, presently importers are waiting for more correction in international prices and they are not signing any cotracts for wheat imports. But, consginments of wheat nearly 4.5 lakh tonnes from Ukraine and Australia are expected to reach Indian ports in next two months.

As per the market sources, the supply of milling wheat from Rajasthan and Madhya Pradesh to South India market costs Rs. 1980-2,020/100kg while Ukrainian wheat available at Tuticorin port is priced at 1,740/100kg (old stocks) for mill delivery in port towns.

At current global price level, Indian buyers are offered Ukrainian wheat at $215 a tonne (CNF). At this rate Indian millers will cost at Rs. 1,777-1,778/100kg including import tax, port expenses and local transport charges. Hence, there is good prospect of wheat from Ukraine at current rates.


But, port town millers are seen reluctant to source premium quality of wheat from Australia as prices have shot up considerably. As per the market sources, demand for Durum wheat has increased in the domestic market as south Indian millers are aggressively sourcing it from Rajasthan and Madhya Pradesh after the landing cost of Australian Premium wheat has increased.


The bilty rates for Durum wheat are seen at Rs. 2,000-2,150/100kg for south Indian delivery from Madhya Pradesh and Rajasthan as per the quality of the grain. Durum wheat is similar to APW.



The C&F for Australian Soft wheat is at $252 a tonne and $265/270 per tonne for Australian Premium Wheat.

As per the current CNF, the landing cost of imported wheat is given hereunder: