Impact of Covid-19 on Wheat Exports

Imposing the Covid-19 pandemic regulations on the international trade sector affected every sector of the world adversely. This pandemic not only affected the agriculture sector, but also sectors like manufacturing, automotive, construction, and import/export were affected, adversely. As compared to the climatic impact, the Covid-19 pandemic has a greater impact on the global economy due to human life loss and business as well. In the present crisis, the Agri-commodity sector is affected badly. Many big players on the trading field faced a huge loss or went completely out of the race. Likewise, in other global trades in Agri-commodities, the export of wheat was also impacted adversely.

Wheat is a cereal grain that is mainly cultivated worldwide for its seeds. It belongs to the grass family. Around 20 wheat varieties of 7 species are cultivated globally, of which Triticum Vulgare (or aestivum), T. durum, and T. compactum are the most common types mainly used in modern food production. Wheat contains 1.01 mg of Vitamin E and 70.7 µg of Selenium, carbohydrates, energy, vitamins, and other minerals. Because of these qualities, the demand for wheat also was stable during the pandemic. However, the demand and supply of the international cereal trade market also had to face some heat during the global pandemic.

Covid-19 Impact on the Agri-Commodity Sector:

The contagion hampered the agriculture sector at the global level negatively, be it in agriculture production, labor availability, food imports or exports, or so on. The international trade market was shocked by this pandemic. In this scenario, even the largest wheat exporters in the world faced many ups and downs. Russia is the largest wheat exporter, followed by Canada, the United States, France, Ukraine, and so on. These largest exporters of wheat were negatively impacted by Covid-19. The wheat trade market of these countries suddenly showed a slowdown in the trading sector, consequently followed by a negative graph.

The lockdown situation and the ban on trading had a great impact on the market. The sudden increase in wheat prices globally due to the lockdown positively helped India. As compared to the world’s leading wheat exporter countries, India was not even in the row anywhere. However, thanks to the surging prices of wheat globally, India is now climbing the global international grain market bandwagon. If the last few years are to be considered, India did not perform well in the wheat exportation sector for various reasons, like government minimum support prices, high prices of cleaning, bagging, loading, and transportation. However, during the pandemic, the Indian wheat export market showed a positive impact on the increasing trade graph.

Statistical Facts of Wheat Exportation:

The following table shows the global wheat export data. Russia is the major key player in this field, followed by Canada, the United States, France, and Russia, and so on. Wheat exports increased globally, year on year. From the year 2009 to 2019, it increased at an average annual rate of +2.9%. This increment growth rate was constant with minor fluctuations.

The Three Major Exporters of Wheat – Russia, Canada, and the United States – provide almost half the quantity of the total wheat exportation globally. They provide approx. 45.8% of the wheat.

Source: www.fao.org/worldfoodsituation

In the financial year 2012-13, India’s wheat exports were 86.51 lakh MT that gradually decreased. India’s wheat trade graph in the last few fiscal years was almost constant with a slight increment or decrement in the trade. Observing the last year’s data, experts assumed that wheat exportation would not perform well in the pandemic situation. In contrast, India’s wheat export sector showed a positive response and suddenly increased with a positive impact.

The data is taken from a reliable source only.

Wheat Export Industry Survival in Corona:

Not only do geological factors affect this industry, but other factors also impact this industry. One of the major affecting factors is technology. Leveraging technology affects us in both positive and negative ways. Agri-businesses having a strong online presence achieved a positive impact compared to the businesses present physically only. The online B2B platform helped traders to survive this pandemic.

As the rules and regulations in the current scenarios are changing, one must connect their business online. Traders are gradually shifting their business presence to B2B platforms globally. There are numerous online platforms. One of the unique platforms is Tradologie.com, where one can trade with genuine and verified traders.

The exportation of wheat

Wheat is one of the major staple foods cultivated and exported globally. It has been cultivated for more than 10,000 years and is consumed by the world population daily in any form. This first and foremost staple food is an important dietary fiber-containing an ample amount of energy, starch, and other vital vitamins, amino acids, minerals, and other components that are beneficial for health.

Wheat is cultivated on every continent in the world. There are numerous wheat exporters in India, as India is the second-largest producer of wheat and is a major exporter of the same. The government sets the wheat prices in India, which depends on various factors that further impact the international wheat trade sector.