Russia-Ukraine War Creates Fertile Ground for Punjab Wheat Traders to Reap Rewards of Supply Crunch

Asia’s biggest grain mandi in Punjab’s Khanna city is usually desolate at this time of the year as the new crop only comes after harvest in April. The wheat crops are lush and green, waiting to be harvested. But the normally empty grain mandi (marketplace) is now buzzing with action and expectation. The thing with wars and turmoil is that they bring a mixed bag. With grimness also come opportunities for some.And as Ukraine and Russia are engaged in conflict, wheat supply and exports to many countries have taken a hit.The two warring countries are responsible for about 40% of the world’s wheat supply. Punjab, despite having good-quality wheat, exports largely to Sri Lanka and Bangladesh. Even within India, big corporations are lured by wheat from Ukraine and Russia. But not anymore. And now demand for wheat from India has started to grow.The president of the wheat traders’ association of Khanna, Harbans Singh Rosha, tells News18.com, “We have been suffering because of low MSP (minimum support price). Most of the wheat that goes to Kandla port is from Saharanpur in Uttar Pradesh, and from Madhya Pradesh. Our wheat is top quality. We have 40 lakh tonnes of stock and we expect 200 lakh tonnes more after the harvest. This war has given us some new orders and we are hopeful of more.”Sources say that big buyers like Adani and ITC have already contacted these traders.Says Balbir Singh Rajewal, president of farmers’ political front Sanyukt Samaj Morcha (SSM), “Yes, this turmoil is good news for traders but may not be so good for the kisan (farmer). What we need is that the farmers must be given better MSP and rates. I hope the new government of Punjab understands this as the war will last long and the new crop yield will come in April and we should be able to see profits.”The traders in Khanna are keenly awaiting the results of the Punjab assembly elections to be announced on March 10. Exit polls have indicated that the Aam Aadmi Party (AAP) may oust the ruling Congress. The traders plan to meet the new chief minister with their petition. Says Rosha, “Wheat from Gujarat, UP and MP is cheaper as taxes are less there. We hope the new CM will slash the taxes so that private traders can sell at competitive rates.”The rates, for example,​ were less than Rs 2,000 per quintal. A long war may fetch higher prices for the traders of Khanna. That’s why they and many like Rosha are keeping close track of how long the war lasts. Because the situation is, the longer the turmoil the more the profit.Read all the Latest News, Breaking News and Assembly Elections Live Updates here.

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