Indian Drought Impacts Global Agricultural Trade

What happens in India sends ripples or shockwaves across global agricultural trade. Drought conditions have led to a projected increase in Indian wheat imports and indirectly to rising UK hummus prices. The drought affecting 52 districts across Madhya Pradesh, Rajasthan, and Chhattisgarh provinces could force India—the second-largest wheat producer and consumer in the world—to import the second-most wheat in 12 years. Analysts forecast India will import 3.5 million tonnes of wheat this year, an increase from 2.5 million tonnes in 2017. Drought conditions have also curtailed Indian chickpea production in recent years, leading to increased imports for the world’s largest producer. The average retail price of hummus in the UK has increased by 12% since January 2017 due to growing domestic demand coupled with a reduced global chickpea supply. As forecast Indian drought conditions persist, Gro Intelligence will continue to provide subscribers with data and analytics to stay ahead of an increasingly interconnected worldwide agricultural marketplace.