A bitter harvest for wheat as war pops export dreams

crisis in West Asia intensifying, there is lacklustre sentiment among both importers and exporters due to higher freight costs and logistical uncertainties. Things are likely to be clear in due course of time," said Vikas Jain, proprietor, Osho Marketing House, a Delhi-based export firm.“Though global wheat prices have increased, it could have been a good opportunity for Indian farmers and traders to earn better returns through exports.

However, disruptions in global supply chains and the rise in freight charges have reduced that opportunity,” another exporter said, who wishes not to be quoted.The FAO Cereal Price Index averaged 108.6 points in February, up 1.1 points (1.1%) from January, but still 4 points (3.5%) lower than its level a year earlier. World wheat prices rose 1.8% in February, supported by reports of frost and increased winterkill risks in parts of Europe and the US.“Logistical disruptions in the Russian Federation and continuing tensions in the Black Sea region also contributed to the increase,” the FAO said in its report released on 6 March.“India had the opportunity to tap export markets during the Russia-Ukraine war, but the ban on wheat exports prevented exporters from taking advantage of it,” said Bhagwan Meena, a farmer from the Malwa region in Madhya Pradesh.Echoing the views of farmers and exporters, industry representatives said that traders and processors may remain cautious this season, as escalating tensions in West Asia may disrupt wheat exports to several markets in the region.