India to be regular wheat importer, says CWB
Thu Dec 13, 2007 12:04pm
By Mayank Bhardwaj
NEW DELHI (Reuters) - India will be a regular wheat importer in the future despite being the world's second-biggest producer as demand from a growing population races ahead, a Canadian Wheat Board official said on Wednesday.
India imported 5.5 million tonnes of wheat in 2006, its first overseas buys in six years, and has tied up contracts for 1.8 million tonnes this year.
"I would suggest that India is going to be importing on a more regular basis," Dave Burrows, a wheat board director, told Reuters in an interview in New Delhi.
"Perhaps not every year, but on a more regular basis than they have in the past."
Burrows is in India as part of a delegation which aims to help the South Asian giant set up food processing units.
Analysts say India needs around 73 million tonnes of wheat annually to feed its more than one billion population. Domestic production has been stagnating, forcing the government to order expensive imports to build reserves.
"We are sensitive to the fact that India's population by all accounts is growing by about 20 million people a year and your crop size is around 70-74 million tonnes," Burrows said.
The Canadian Wheat Board, one of the world's biggest sellers, supplied a million tonnes of wheat to India last year, Burrows said, adding it has sold 350,000 tonnes this year.
Canada is the world's second-biggest wheat exporter after the U.S. but ahead of major player Australia.
Expressing concern over climate change and its adverse impact on wheat-growing regions, Burrows said India was not immune to the threat.
High temperatures in February 2006 clipped Indian output to 69.3 million tonnes, forcing the government to look overseas for stocks. According to government estimates, India produced 74.9 million tonnes in 2007.
Burrows said Canada produces 20 million tonnes of wheat annually but consumes only 2.3 million tonnes due to its small population.
"There is nothing that would prohibit us from having more business dealings in the future. India is a growing market with a growing population and a strong economy," he said.
But importing countries should be prepared to pay more for wheat as demand was expected to run ahead of supplies even if availability improves in 2008.
"I think farmers would like to see two, three or four years of success in buoyant prices before they actually make a commitment to grow more wheat," he said.
Canada's 2008 wheat output was expected to cross this year's level, improving supplies, but production would not rise substantially, he said.
According to Statistics Canada, the country produced 20.05 million tonnes this year.
Thu Dec 13, 2007 12:04pm
By Mayank Bhardwaj
NEW DELHI (Reuters) - India will be a regular wheat importer in the future despite being the world's second-biggest producer as demand from a growing population races ahead, a Canadian Wheat Board official said on Wednesday.
India imported 5.5 million tonnes of wheat in 2006, its first overseas buys in six years, and has tied up contracts for 1.8 million tonnes this year.
"I would suggest that India is going to be importing on a more regular basis," Dave Burrows, a wheat board director, told Reuters in an interview in New Delhi.
"Perhaps not every year, but on a more regular basis than they have in the past."
Burrows is in India as part of a delegation which aims to help the South Asian giant set up food processing units.
Analysts say India needs around 73 million tonnes of wheat annually to feed its more than one billion population. Domestic production has been stagnating, forcing the government to order expensive imports to build reserves.
"We are sensitive to the fact that India's population by all accounts is growing by about 20 million people a year and your crop size is around 70-74 million tonnes," Burrows said.
The Canadian Wheat Board, one of the world's biggest sellers, supplied a million tonnes of wheat to India last year, Burrows said, adding it has sold 350,000 tonnes this year.
Canada is the world's second-biggest wheat exporter after the U.S. but ahead of major player Australia.
Expressing concern over climate change and its adverse impact on wheat-growing regions, Burrows said India was not immune to the threat.
High temperatures in February 2006 clipped Indian output to 69.3 million tonnes, forcing the government to look overseas for stocks. According to government estimates, India produced 74.9 million tonnes in 2007.
Burrows said Canada produces 20 million tonnes of wheat annually but consumes only 2.3 million tonnes due to its small population.
"There is nothing that would prohibit us from having more business dealings in the future. India is a growing market with a growing population and a strong economy," he said.
But importing countries should be prepared to pay more for wheat as demand was expected to run ahead of supplies even if availability improves in 2008.
"I think farmers would like to see two, three or four years of success in buoyant prices before they actually make a commitment to grow more wheat," he said.
Canada's 2008 wheat output was expected to cross this year's level, improving supplies, but production would not rise substantially, he said.
According to Statistics Canada, the country produced 20.05 million tonnes this year.
Comment