Indian farmers are expected to harvest a record 150.5 MMT of grains in marketing season 2021/22, up from 149 MMT last season. Rice is estimated to hit a record 107 MMT, up from 104 MMT. Market participants expect the higher harvest volumes to lead to a boost in shipments. India accounts for 45% of the global rice exports market and will likely gain market share on higher sales to buyers across Asia and Africa.
According to industry officials, higher freight costs and a rally in global wheat prices are attracting Asian buyers at rates that could raise the wheat exports to eight-year highs in 2021. India’s wheat inventories are currently at record highs, while wheat supplies from Russia and Canada have dwindled. With human and feed consumption driving demand, India’s wheat exports are forecast to reach 4.2 MMT this year, the highest since 2013. India harvested a record 109.5 MMT of wheat in 2021. State-run agencies currently hold a record 51.8 MMT, more than double the required buffer. Though prices have risen recently, Indian wheat remains cheaper compared with other countries.
Sugar exports in marketing season 2020/21 recorded an all-time high of 7.2 MMT, up 20% from the previous season. Driving exports were government backing, stronger demand from foreign markets and reduced competition from Brazil. Indonesia was the main buyer at 1.8 MMT, followed by Afghanistan, UAE, and Somalia.