ukraine russia war India’s economy can benefit greatly from the ongoing high voltage war between Ukraine and Russia. Ukraine and Russia make up a quarter of wheat shipments globally. Now because both the countries are facing war at this time, in such a situation, India has a big opportunity to increase wheat exports. Experts believe that in such a situation, India should focus on building wheat stock on a large scale as soon as possible.
India is the third largest exporter of wheat in the world after Ukraine and Russia. However, Russia and Ukraine alone export a quarter of wheat globally. But now because both the countries are currently facing war, then India has a big opportunity to increase wheat exports. Along with the opportunity, there will also be pressure on India to increase the storage of wheat on a large scale.
A government official said the central government is in the process of asking its diplomats abroad to facilitate export of wheat, as the war between Ukraine and Russia has led to a rise in international wheat prices. Western Europe, Turkey and the Philippines are major importers of wheat and maize (maize) from Russia and Ukraine. At present, India has a big opportunity to increase the export of wheat.
Russia isolated due to sanctions
Western countries have imposed a flurry of sanctions on Russia for attacking Ukraine. The United Nations General Assembly and United Nations Human Rights have also taken strong action against Russia. In such a situation, Russia has become isolated from many countries of the world. Meanwhile, many countries are now eyeing India for the supply of wheat.
Wheat at record price
Global wheat prices have hit record highs since Russia’s attack on Ukraine. According to a note from Commerzbank, the war has cut global wheat exports by 30%. The international Chicago benchmark for wheat has risen 50% since the start of Russian crackdowns in Ukraine, with global prices touching around $14 a bushel (about 30 kilograms).