Is wheat import the only option now?
Is wheat import the only option now?If the wheat shortage continues in india, the government may have to import wheat. But the good thing is that the price of wheat in the international market is quite low at this time. The price of wheat in russia is around $ 230 per tonne. The price of wheat in australia is around $ 270 per tonne.The cost of transportation and insurance on importing wheat from russia is around $ 40-45 per tonne. This cost will be $ 30 per tonne on importing wheat from Australia. In this way, the cost of wheat in india will be $ 270-300 per tonne or Rs 2290-2545 per quintal. This price is very close to the minimum support price (MSP) of Rs 2425 per quintal set by the government of India. Therefore, if the government imports wheat, it will not be very expensive and can help in meeting the wheat shortage in the country.Why are oil prices rising?The main reason for the increase in the prices of edible oil is Indonesian palm oil. Palm oil is usually cheaper than soybean or sunflower oil, but this has changed in the last 3-4 months. Till August, the price of palm oil was lower than soybean and sunflower oil. But now, the price of crude palm oil (CPO) imported into india is $1280 per tonne, which is more than crude soybean oil ($1150) and sunflower oil ($1235).The main reason for the increase in palm oil prices is Indonesia's decision to increase the blending of palm oil in diesel from 35% to 40%. indonesia is the world's largest palm oil producer. It is planning to introduce B40 biodiesel next year. The US Department of Agriculture (USDA) estimates that 14.7 million tonnes of palm oil will be used for biodiesel in Indonesia. This will reduce oil exports from Indonesia and oil prices are rising worldwide. This is a matter of concern for india, as India imports most of its edible oil from abroad.