Tridge summary
Indian government data reports a significant decrease in wheat stocks in government warehouses, dropping by half from the previous year, with only 21 million tonnes available on November 1, down from 42 million tonnes the year before. Although slightly surpassing the official target of 20.5 million tonnes for the quarter ending December 31, this represents a substantial decline from the 22.7 million tonnes recorded in October. This reduction could potentially limit the government's ability to regulate wheat prices by releasing stocks, as prices have risen despite a export ban and slow market arrivals. However, favorable weather conditions during the harvest season could lead to a recovery in wheat output to pre-pandemic levels. Meanwhile, local wheat prices have reached a record high of 26,500 rupees a tonne, an increase of nearly 27% since the export ban.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
Indian wheat stocks held in government warehouses were half the level of a year ago on Nov. 1, government data showed on Monday, but inventories were marginally higher than the official target. Wheat reserves in state stores totaled 21 million tonnes at the start of this month, down from 42 million tonnes on Nov. 1, 2021, but still slightly higher than the official target of 20.5 million tonnes for the quarter ending Dec. 31. Wheat inventories at government-run granaries stood at 22.7 million tonnes on Oct. 1. Lower state reserves could hobble the government's efforts to release stocks to cool wheat prices, something it does regularly for bulk buyers such as flour and biscuit makers. Wheat prices have surged in India despite the world's second biggest producer of the grain implementing a ban on exports in May as it was stung by a sudden drop in crop yields. Market arrivals from the previous harvest, meanwhile, have slowed to a trickle as farmers run down their stores. Indian ...
Source: Economic times
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