Lack of supply caused wheat prices to rise in India

Wheat prices have jumped in India in recent months as the real crop is well below official estimates. This seriously complicates the authorities' efforts to contain food inflation by providing enough basic food, according to Grain Central. Last week, the Flour Producers' Federation of India estimated this year's wheat harvest at 101-103 million tons, based on the limited supply of wheat in the domestic market. This is about 10% lower than the government's official estimate of a record 112.74 Mt, and well below domestic consumption of around 108 Mt per year. The problem has worsened as the government overestimated last year's harvest and temporarily allowed wheat exports. The Department of Agriculture and Farmers' Welfare raised its estimate for gross wheat harvest from 112.2 Mt to 112.74 Mt at the end of last month, despite reduced production in several key production regions due to storm damage to crops. In February and March, torrential rains and hail lashed the northern, ...