India: Ukraine’s partner or competitor in the wheat market?

22.11.2017

Last week’s hot topic in the grain market was the Indian government’s decision to double its import duty on wheat. The wheat import duty was raised from 10% to 20% from November 8 in order to support national growers and restrict deliveries of cheaper wheat from abroad. This news directly concerns Black Sea wheat exports to India, mostly from Ukraine.

As a reminder, India imported wheat in the previous two years because of drought and crop failures in the country. In the 2016/17 season, India became a net importer of wheat for the first time in six years. The country imported 5.9 MMT of wheat in MY 2016/17, including almost half (2.9 MMT) from Ukraine. Other Black Sea wheat suppliers included Russia and Bulgaria.

Some hopes and expectations were definitely pinned on India in the current 2017/18 season. And they did come true to some extent, UkrAgroConsult notes.

To know the effect of the duty on Ukrainian wheat exports in the second half of the 2017/18 season please read in the full version of the article that available to subscribers for weekly market report “Black Sea Grain” and “Online market review” by UkrAgroConsult.

 

UkrAgroConsult

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