India’s wheat stocks to stay above buffer levels despite sale

Published 2024년 1월 4일

Tridge summary

Despite the ongoing sale of wheat from state reserves, India's wheat inventories are expected to remain above the buffer norm on April 1, with stocks at the lowest level in seven years. The open market sale scheme (OMSS) has helped stabilize prices, with 5.8 million tons of wheat sold to bulk buyers since June 1. Although India banned exports due to reduced output and global price increases, local wheat prices are still far above the government-set minimum support price. Additionally, the country has sufficient rice stocks to meet local requirements, despite a slightly lower rice procurement from the new season crop compared to last year.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

India’s wheat inventories are likely to remain above the buffer norm on April 1 despite the ongoing sale of the grain from state reserves, a senior government official said on Wednesday, which has brought down stocks to the lowest level in seven years. The country’s wheat stocks at state warehouses have dropped to 16.47 million metric tons as of Jan. 1, Ashok Kumar Meena, chairman of the Food Corporation of India told reporters. The Jan. 1 inventories are the lowest since 2017. “The open market sale scheme (OMSS) has helped in stabilising prices,” said Meena, adding the government has sold 5.8 million tons of wheat to bulk buyers, such as flour millers and biscuit makers, since June 1. Trades were speculating the OMSS would pull wheat stocks below 6 million tons when the new marketing year begins on April 1, against the norm of a buffer of 7.46 million tons. However, Meena said that despite the OMSS, stocks will not fall below the buffer norm. India, the world’s second-biggest ...

Source: UkrAgroConsult