India: Government must consider importing wheat and milk fat to keep food inflation under check
Wheat
Dairy
India
Published Jan 31, 2023
Tridge summary
Wheat and atta prices are on fire, retailing at an average of Rs 30 and Rs 35 per kg respectively, as against Rs 20 and Rs 25 a year ago. As a mitigatory measure, the Narendra Modi government has approved offloading three million tonnes (mt) of the cereal from the Food Corporation of India’s (FCI) […]
Original content
Wheat and atta prices are on fire, retailing at an average of Rs 30 and Rs 35 per kg respectively, as against Rs 20 and Rs 25 a year ago. As a mitigatory measure, the Narendra Modi government has approved offloading three million tonnes (mt) of the cereal from the Food Corporation of India’s (FCI) warehouses into the open market over the next two months. The expectation is that this will help cool prices ahead of the arrival of new crops from end-March. But there are two possible hindrances. The first is that public wheat stocks, at 17.17 mt on January 1, are already at a six-year-low and marginally above the required minimum of 13.8 mt for this date. While the discontinuation of the additional 5-kg per-person per-month free grain supply through the public distribution system has given more leeway for the FCI to undertake open market sales, the overall stocks position is still quite precarious. The second source of uncertainty relates to the size of the 2022-23 wheat crop. Right ...
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