For the first season in more than a decade, Indian Rajensingh Pawar farmers sell their new wheat plants to private traders instead of Stockpiler, because the global wheat price rally provides a rare rare Indian export window supplier.

Strong demand after the Russian invasion to Ukraine means farmers receive the highest price ever for their plants, while also reducing pressure on the agent of the procurement of the state seeds that collect large debts as the latest buyer.

When the boom came when Pawar and his colleagues harvest the record of Indian wheat plants, giving farmers the rare opportunity to sell the exact grains as detained by the highest global price of all time.

“After a long time, traders are ready to pay more than MSP,” said Pawar, 55, referring to the minimum support price where Indian food companies (FCI) buy seeds from farmers.

“Increasing Indian wheat exports have helped farmers like us who get a much better return,” he said, when he lowered wheat in the wheat market in the state of Madhya Pradesh, known as high quality wheat.

Before nearly 50 percent of the surge in global wheat prices, India struggled to export seeds because of the annual increase in MSP to calm a strong agricultural lobby that makes Indian wheat more expensive than world prices.

But a rare meeting with high international prices, successive record plants, weaker rupees of dollars and increased internal logistics has made shipping from India attractive.

“This is a golden opportunity for India to export a surplus,” said Nitin Gupta, Vice President at Food and Agri-Business Olam Agro India.

For the international wheat market, India’s sales help to compensate for supply shortages produced from disturbances driven by Ukraine in the Black Sea area, slaughtering plants in Canada and decreased quality ranking in Australia.

For Indian authority, fast demand from handling private wheat with prices above MSP 20,150 rupees ($ 262.88) means the purchase of FCI wheat is expected to fall dramatically for the first time in decades.

Lower state purchases in turn means a large budget savings. Last year, India spent 856 billion rupees ($ 11.2 billion) bought a record of 43.34 million tons of wheat from farmers, filled the state barn with full national debt and increased national debt.

This year’s FCI purchase can fall under 30 million tons, trade officials and government said, which means that less capital government will be bound to buy and store plants.

Indian traders have signed a wheat export transaction between $ 330 and $ 335 per ton for free on boat, said Rajesh Paharia Jain, a Delhi -based trader. It is almost $ 50 per ton cheaper than rival suppliers because rally in global prices and large surplus stocks at home have made it easier for Indian suppliers to offer discounts, but still far above local prices.

Following the busy export offer signed in February and March, Indian wheat shipments touched a record of 7.85 million tons in the fiscal year to March – up 275 percent from the previous year.

Exports can surge up to 12 million tons in the 2022-23 fiscal year, said traders, making it a serious player in the global market.

Indian exports have also been assisted by sharp jumps in plant quality. Previously limited to markets that are sensitive to costs that receive low-quality products, exporters have recently made sales to some of the smartest wheat consumers in the world.

For the first time, the highest global wheat importer of Egypt has bought seeds from India, which according to the source has helped India build a reputation as the top level supplier.