The Indian government plans to improve its position in the global grain market in the face of the Ukraine conflict. According to Reports, the Indian government intends to construct infrastructure.
India is attempting to enhance its weight in the global grain market by taking advantage of the current uncertainty in the world wheat market created by the conflict in Ukraine. Reuters reported this on March 16, citing two Indian government sources who spoke on the condition of anonymity.
According to the data, the government would take the required steps in the next weeks to make India one of the leading exporters of premium wheat. The government intends to monitor the quality of grain delivered for export through 213 laboratories under its supervision. Additionally, extra rail transportation will be supplied, with seaports receiving precedence in wheat exports. Although grain exports will continue to be mostly from the two ports on the west coast, new infrastructural capacity, particularly on the east coast, will be built.
India is already the world’s second-largest wheat producer, after China. India exported 6.1 million tons of this sort of grain last year, up 1.1 million tons from the previous year. The planned steps, according to the news agency’s sources, might result in an increase in Indian wheat exports to 10 million tons per year. Several rounds of discussions were held beforehand, they claim, including those with national agencies, state governments, and big exporters. Despite overproduction, logistical challenges and grain quality issues have thwarted India’s attempts to increase grain exports on the international market.
Analysts say Russia’s attack on Ukraine will have immediate market ramifications because Ukraine is a major producer and exporter of grain and vegetable oils. According to Reuters, Ukraine harvested an all-time high of 86 million tons of grain in 2021.
The countries of North Africa and the Middle East account for a major portion of Ukrainian exports in this area. Yemen, for example, continues to import a fifth of all wheat from Ukraine, according to the UN, despite having the world’s worst humanitarian catastrophe.
Analysts believe that as a result of Russia’s war against Ukraine, grain prices will fluctuate and rise.
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