- Wheat is one of the most internationally traded grains and has a higher protein and calorie content than other cereals. It is mainly consumed in baked goods like bread after being milled. - The average production cost of wheat per acre in India is approximately Rs. 8,000, while the average yield is 10 quintals per acre, bringing the total income to Rs. 1,20,000. - International wheat grain trading is a high-volume, low-margin business influenced by government policies. Margins typically range from Rs. 100-500 per metric ton depending on logistics costs.

1. Santosh Kumar Sahu Agriculture & Food Professional From India [email_address] 91+9429898730 Wheat

2. Some Important Facts The amount of wheat traded internationally exceeds that of other grains . Protein and caloric content of wheat is greater than that of any other cereal crops. Most Wheat is consumed in the form of baked goods mainly bread, therefore wheat grains must be milled before consumed . Wheat is also important as an ingrediant in compound feedstuffs,starch production, and as a feedstock for ethanol formation.

3. Some Important facts Approximate Wheat Production Cost per Acre For Seed @10 kgs/acre = Rs. 200 ( approx) For N Fertilizer @ 60 Kgs/acre = Rs. 300 ( approx) For PK Fertilizer @ 80 kgs/acre = Rs. 300 ( approx) Herbicided @ 800 ml/acre = Rs. 200 (approx) Water @ 17 hrs/acres = Rs. 3500/acre (approx) Other small expenses including roguing = Rs. 3500/acre (approx) --------------------------------------------------------------- Total Expenditure Assuming the farmer has land = Rs. 8,000/acre

4. Revenue Generation Selling Price at growers level = Rs. 1200/qtls Yield per acre (avg) = 10 qtls/acres Total Income out of grain = Rs. 1,20,000/-

5. Wheat Grain Trading Wheat Grain trading a high volume low margin trading business. It is influenced by Govt as it is one of the socially important food product , hence market regulate the price . So Wheat margins depends on various factors like wheat price as farm gate,freight rate,existence of own elevator,currency exchange rate,govt policy(export subsidy),VAT reimbursements etc. Average Margin is Export varies from Rs. 100-500/-MT depending upon the logistics cost.

6. Wheat Grain Trading Scenes Due Mergers and Acqusition between different international groups in last 10 years has increased the level of grain trading . The main players are – Cargill, Bunge,ADM (all US companies) . Louis Dreyfus(French Company) and small companies across the country . The main method of logistics is through sea except in Africa where the ports are very narrow, hence they prefer cargo services . So Wheat Freight cost is the main factor to contribute the max share to its landed price in importing country.

7. Major Logistics Management Basically wheat is traded through ships as dry bulk cargo vessels . When Vessel demand is very high the freight cost may be doubled. Delays in vessel loading due to poor infrastructure adds more cost to the freight cost. Delays in Grain fumigation also add costs Delay in Custom clearance also add costs Delay in getting phytosanitary & quality certificates also add cost

8. Most Important Countries Projected Import-Export(EXIM) size is 134 million MT by 2018 . Main Exports will be from EU-27,Canada,Australia, and Argentina. Main Importing Countries will be Egypt, EU,Indonesia,Japan,Brazil,Algeria etc Source: OECD-FAO Outlook 2009-18

9. Wheat Flour Like Wheat grain , wheat milling is also a very thin margin business. It depends on good technical knowledge & equipment, price risk management instrument, well establised relationships with wheat supplies &wheat flour buyers, clear and predictatable policy mechanism etc. Wheat grain business is more lucrative than wheat flour due to lower import tariff and easy transportation, long shelf life of grain than flour.

10. Main Wheat Flour Trader Exporter : EU,Turkey,Argentina,Kazakistan,Pakistan,Russia federation etc. Importers : Bolivia,Hongkong,Angola,Iraq,Indonesia,Afganistan,Brazil,Tazakistan,Libiya,Uzbegistan etc .

11. T hanks Santosh Sahu [email_address] 91+9429898730