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momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
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India struggling to export and stock 30 Mt of wheat

Frédéric Hénin, Editor in chief, Terre-net

Article published on Terre-net Média

After two years of very good harvest and another good harvest expected this year, India has overabundant quantities of wheat (Mt) which it must sell, as the country does not have the necessary infrastructures for stocking and/or dispatching this wheat to deprived areas of the country.

This year, India’s ‘wheat exporting capacities will have a stabilizing effect on global wheat prices.’ According to the economic report issued by FranceAgriMer, India will be putting out approx. 10 million tons (Mt) of wheat on the market. But only 6 Mt will be exported, as India does not have the required transport facilities for shipping this wheat worldwide. Yet, international demand is high, as Ukraine and Russia are not in a position to supply enough forage crops to countries in Asia and the Middle-East.

These unusual circumstances have reinstated India as a leading wheat exporting country. India, which produces on average approx. 80 Mt of wheat, produced 87 Mt in 2011 and 93 Mt in 2012. The world’s largest democracy has therefore produced an extra 20 million tons of wheat over the last two years. And the good state of crops as the winter comes to an end promises yet another very good harvest for this year. As a result, wheat stocks have already reached 30 million tons!

Reinforcing India’s food security

Unfortunately as India lacks the transport facilities required for shipping wheat to deprived areas of the country, and does not have the necessary storage infrastructures for stocking this wheat in prevision of low harvest years, India is now forced to rush and sell its stocks.

In the future, efforts to even out wheat production should help reinforce food security in India. Increased income means the country will be in a position to invest in buildings and covered warehouses for storing larger quantities of wheat. New railway infrastructures will be built for dispatching wheat to deprived areas of the country and boost domestic trade.

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Paris, 18 June 2019