India, the world’s third-largest wheat producer, banned wheat exports, but the government predicted that the immediate impact on Korea would be limited. However, there were concerns that it might affect the international wheat supply and demand if it is prolonged.
The Ministry of Agriculture, Food and Rural Affairs announced on the 15th, “Considering India’s share of global wheat exports and the domestic wheat stock situation, the short-term impact on domestic supply and demand is expected to be limited due to the suspension of India’s wheat exports.”
Earlier, on the 13th, India decided to ban wheat exports and export only the quantity approved by the central government on the grounds of ‘ensure food security’. This is a measure to fear that if wheat producers and distributors focus only on exports as international wheat prices soar, the price of flour in the domestic market will rise and even cause a shortage.
According to the Ministry of Agriculture, Food and Rural Affairs, India is the world’s third-largest wheat producer, with exports accounting for 4% of global exports. India consumed most of its wheat production domestically, but exports have increased significantly since last year as domestic crops were good and international wheat prices rose. India’s wheat imports are mainly from Southeast Asia, the Middle East, and North Africa.
Korea imports 3.34 million tons of wheat annually for milling and feed. All milling is imported from the United States, Australia, and Canada, and most for feed is imported from Ukraine, the United States, and Russia.
Currently, the domestic industry has secured use of wheat for milling by early August and feed wheat by early October. If the contract quantity is included, milling can be used until the end of October and feed can be used until December of next year.
Accordingly, it is expected that the immediate impact on the domestic supply and demand of India’s wheat export cessation will be limited.
However, if it is prolonged, it may affect the international wheat supply and price and may have a ripple effect in Korea.
The government has responded to international grain market unrest by lowering the interest rate for purchasing raw materials for feed and food companies in March and increasing the amount of raw materials allocated to substitute feed grains in April. In addition, in the second supplementary budget (additional budget) announced on the 12th, as a measure to alleviate the burden on domestic consumers, the self-employed, and livestock farmers, I also made a budget.
The Ministry of Agriculture, Food and Rural Affairs said, “We will continue to check the international grain market in cooperation with industries and experts, and will actively seek mid- to long-term measures such as improving domestic self-sufficiency and securing a stable overseas grain supply chain as well as short-term measures.”
(Sejong = News 1)