BD buys major portion of wheat exported by India

India has exported 500,000 tonnes of surplus wheat in the last five months with neighbouring Bangladesh buying a major portion of total shipments.
In August 2013, the Centre had allowed export of 2.0 million tonnes of wheat via public trading firms STC, MMTC and PEC at a base price of USD 300/tonne. Later, the floor price was cut to Rs 260 per tonne to make shipments viable.
"So far, the government has approved tenders for export of nearly 1.0 million tonnes of wheat of which 500,000 tonnes has already been shipped out as of now. The rest is under the process," a senior Food Ministry official told PTI.
Wheat stored in warehouses of state-run Food Corporation of India (FCI) is being exported. Much of the exports has been shipped to neighbouring Bangladesh, while some quantities to the Middle East and Korea, the official said.
The official mentioned that Bangladesh is sourcing wheat from India despite higher price being quoted as compared to the US and Australia, mainly because of lower logistic costs.
India is getting good price even as global prices are bearish in view of higher supplies. "We have so far exported wheat at above $ 280 per tonne," the official said.
According to the official, trading firms are in the process of issuing tenders for export of the rest 1.0 million tonnes of wheat and it would be done by March this year.
Indian wheat competes with 'US SRW wheat gulf' and 'Black Sea milling wheat'.
Until last week, export price of Soft Red Winter (SRW) wheat delivered at the US Gulf port stood at USD 259 per tonne, while Black Sea milling wheat was ruling at USD 283 per tonne, according to traders' data.
India was sitting on a wheat stock of 28 million tonnes as on January 15 this year. The government expects earnings of more than Rs 34 billion from export of 2.0 million tonnes of wheat in the current fiscal.