India’s wheat stocks hit 16-year low as record sales, free distribution raise supply concerns

Market & Price Trends
Published Apr 23, 2024

Tridge summary

India's wheat stocks in state-run inventories have hit a 16-year low, with only 7.5 million metric tons available at the start of April, significantly down from the decade's average of 16.7 million metric tons. This reduction is attributed to the government's efforts to control rising prices through record sales and the impact of poor yields over the last two seasons. Despite this, the government aims to procure 33.5 million metric tons of wheat in the 2024-25 marketing year to replenish stocks, although recent showers have slowed down procurement efforts. Additionally, measures to ensure wheat availability and prevent hoarding have been implemented, including mandatory stock declarations and extended food distribution schemes, with export restrictions expected to continue until March 2025 due to global geopolitical tensions. Meanwhile, the EU 11.5% wheat FOB CVB prices have seen a slight increase, assessed at $213.25 per metric ton as of April 18, reflecting the ongoing fluctuations in the global wheat market.
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

India’s wheat stocks in state-run inventories depleted to a 16-year low as the central government sold record quantities to augment domestic supplies and rein in rising prices amid poor crop yields during two previous seasons. Wheat stocks in government warehouses were at 7.5 million mt at the start of April, down from 8.4 million mt a year ago, an official at the Food Corporation of India told S&P Global Commodity Insights. Over the past decade, wheat stocks on April 1 averaged 16.7 million mt. Despite the sharp fall in stocks, the government was able to meet the buffer and strategic reserve norms that mandate holding wheat stocks at or above 7.46 million mt April 1. The government has planned to aggressively acquire wheat to replenish its stocks at state-run warehouses. The government plans to procure around 33.5 million mt wheat produced in marketing year 2024-25 (April-March), nearly 28% higher than the actual procurement of 26.2 million mt a year prior. India could not reach ...
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