India: Wheat stocks at 7-year low, Centre pins hopes on bumper harvest
Wheat
India
Market & Price Trends
Published Mar 28, 2024
Tridge summary
The Indian government is anticipating a significant wheat harvest of 112 million tonnes for the 2023-24 season, aiming to replenish low inventories after two years of reduced output and aggressive market sales. Efforts to ensure robust procurement include allowing states to set their own wheat procurement dates, early procurement, and quick payments to farmers, addressing issues from the past where procurement targets were missed due to farmers selling to private traders for higher prices. The government is also taking steps to boost local supplies, such as banning exports of certain staples and increasing the production of subsidized food items. With favorable weather conditions and the adoption of heat-tolerant wheat varieties, there is optimism for meeting procurement goals and enhancing the country's wheat stocks, especially ahead of parliamentary elections.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.
Original content
A bumper harvest of wheat, as is being expected this year, will be critical to replenish government-held inventories, which have plunged to a seven-year low after record open-market sales by the government to boost domestic supplies and curb prices amid lower output for two straight years, according to experts and officials aware of the matter. The dip in stocks, the lowest since 2017, follows the government’s sale of nearly 10 million tonne since June last year to bulk buyers, such as flour mills, to curb domestic prices. Wheat inflation in the world’s second-largest grower, which climbed to record highs in the aftermath of the Ukraine war, has moderated to about 5% on an annual basis due to aggressive supply-side measures undertaken by the government. Despite lower output due to extreme weather over two straight cropping seasons, the government has avoided wheat imports, which attract a 40% duty. The Food Corporation of India (FCI), the Centre’s main grain-handling agency, had ...
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