The MV Ince Akdeniz, which carried a consignment of 1.5 million tons of wheat and hailed from India, was rejected by Turkey after the detection of Rubella disease.
Turkish authorities denied an Indian wheat consignment permission due to phytosanitary concerns, causing a ship to return to port on May 29, traders told S&P Global Commodity Insights on Tuesday.
Indian traders are concerned about the development because at least 1.5 million tonnes of wheat was scheduled to be shipped.
The MV Ince Akdeniz, loaded with 56,877 tonnes of durum wheat, is presently heading back to Kandla port from Turkey, according to an update by S&P Global Commodity Insights, which cited shipping data from tracker Kpler.
“The wheat consignment was detected with Indian Rubella disease and was rejected by the Turkish ministry of agriculture and forestry,” S&P Global Commodity Insights quoted traders based in Istanbul.
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The Indian ministries of commerce and agriculture did not reply to requests for comment.
Before India enforced a restriction on private wheat exports, these shipments were finalized. Consumer inflation in Asia’s third-largest economy reached 7.79 percent in April, the highest level in eight years. Food prices have risen by 8.38 percent, which is concerning. High inflation was evident even in excess products like wheat, which saw a 20 percent increase in price last month as traders increased their shipments.
India halted exports after anticipating a 3 percent drop in wheat output to 106 million tonne owing to a hot summer, down from a previous projection of 111.32 tonne in February.
“Presence of Indian Rubella plant disease will be a serious concern for any importing nation but this is a rare instance in the case of Indian wheat.” Traders are obviously worried,” said Abhishek Agrawal of trading firm Comtrade.
Despite the fact that India is not a major wheat exporter, other countries are banking on Indian supplies to make up for a global shortfall caused by the Ukraine conflict. In the fiscal year that ended in March 2022, exporters shipped a total of 7 million tonnes, a new high.
Because worldwide prices had risen above domestic floor prices as a result of the Russia-Ukraine crisis, India was able to export huge quantities of wheat.