Wheat exports from India to Bangladesh are in troubled waters with the latter country requesting for wheat imports at a lower price than the amount India has set for exporting the commodity. This development holds immense significance for numerous Indian agro export-based SMEs who are monitoring global developments for wheat exports with hopes to resume trade again.

Incidentally, India had banned wheat exports in 2007 in an endeavour to stock up wheat for domestic consumption and now has agreed to sell up to 400,000 tonnes from the national stock to Bangladesh at US$370 per metric tonne. However, Bangladesh insists that it will purchase 300,000 tonnes at a price little more than what it pays for Black Sea-origin wheat from Ukraine, which is less than the price point India has quoted. Notably, propped by a substantial increase in stocks, the Indian government is likely to review the ban on wheat exports in September this year.

Any fall out with the neighbouring country, however, could dampen the chances of Indian agro export-based SMEs intending to export wheat after the ban is lifted to do lucrative business with Bangladesh. Incidentally, Bangladesh is the fifth highest importer of wheat in the world which gives Indian SMEs a greater scope to export wheat because of the high demand in that market and low logistic costs because of the geographical proximity.

Sreemita Bhattacharya