India's on Friday allowed the export of 2.5 million metric tons of wheat and an additional 500,000 tons each of wheat products and sugar, as the world's second-biggest producer of both commodities
India's on Friday allowed the export of 2.5 million metric tons of wheat and an additional 500,000 tons each of wheat products and sugar, as the world's second-biggest producer of both commodities seeks to support local growers amid protests over a trade deal between New Delhi and Washington.
On Thursday, thousands of farmers staged demonstrations, alleging the government had compromised their interests under the interim U.S.-India trade framework, though the trade minister said safeguards were in place.
Announcing the decision in a statement, the federal government said the aim was to stabilise domestic markets and ensure financial returns for farmers, following a review of current supply and price trends.
Last month, the federal government allowed exports of 500,000 tons of wheat flour and other wheat products, after approving exports of 1.5 million tons of sugar in November for the season that began on October 1.
Traders said the permission to export was likely to improve sentiment in the local market, but fulfilling the allocated volumes may be difficult.
Sumit Gupta, CEO of Waseda Global, a Gurugram-based commodity brokerage, said Indian prices' hefty premium over other origins would be a challenge.
Indian wheat is offered at around $280 per ton free-on-board
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