Indian wheat prices jumped to a record despite an export ban amid strong demand and dwindling supply from a heatwave-hitted crop.
Rising wheat prices have reduced India's chances of supplying substantial amounts under government agreements with countries struggling to secure shipments amid the war-related disruption to Ukraine's trade.
“Most farmers have sold their crop. Insignificant supplies are being sold even though demand is robust,” said Gopaldas Agarwal, a trader based in Indore, central India.
The local prices of wheat Indian oil jumped to a record 23,547 rupees per tonne on Wednesday.
This represents an increase of nearly 12% from recent lows following the government's surprise export ban announced on May 14.
Supply in grain markets has been much lower than usual this year, showing 2022 production has fallen by more than the government had estimated, a Mumbai-based trader with a global trading company said.
“The government estimate of 106.41 million tons is nowhere near the reality. The supply suggests production around 95 million tonnes,” he said.
The Foreign Agricultural Service of the US Department of Agriculture EUA estimated India's wheat production at 99 million tonnes.
Sources: investing.com
