Provided by Rajandra Jadhav and Mayank Bhardwaj
Indore, India (Reuters). Strong wheat yields in India quickly supplement stocks, which means that this year the country will be able to satisfy domestic demand this year, contrary to the market that it will require foreign stocks and a possible stretching of global prices.
India banned 2022. Staple exports and extended insurance as 2023 And 2024. Again, due to extreme heat, the crop has again reduced crops, draining reserves, pushing prices to record the highest, and promoting speculation, imports the first since 2017. Imports will be needed.
However, for the world wheat manufacturer no.
“In recent years, as soon as I import without imports, the country finally looks out of the forest and without fear of importing wheat,” said Amit Takkar, the chief of coniferous consultancy consulting the new Delhi.
The Indian Food Corporation, a state -owned representative, from local farmers – most of them in four years – bought $ 29.7 million.
The total purchase of FCI wheat can increase this year to 32 million – $ 32.5 million.
This stock of about 44 million tonnes would significantly exceed the FCI annual 18.4 million tonnes of the world’s largest food welfare program, which provides free grain of nearly 800 million people.
Six industrial and government officials said FCI’s growing wheat stocks were sufficient to dispel the import prospect of the global trade community.
As the second largest wheat consumer does not need to be imported, global grain prices are likely to be under pressure, as the best exporting countries such as Argentina, Australia and Canada remain strong and the highest level of Chinese demand has weakened.
World wheat prices have fallen by more than half of the record in 2022, decreasing earlier this month to the lowest level in almost five years.
Imports avoided
Better weather, climate -matching seeds and proper soil moisture from last year have helped to improve this year’s wheat production in India. The increase in almost 15% of wheat prices over the past year – led to a consecutive poor harvest – also encouraged farmers to move to wheat.
Farmers of the Central Madhya Pradesh, known for the highest quality wheat of pizzas and pastes, said crop yields were higher this year due to a lighter hike.
“The weather was better this year compared to last year,” said farmer Sunil Dubey, when he directed his tractor trolleybus, caught in brown wheat bags to a dusty, bustle of the wholesale Indor market.
Dubey and many other farmers sold their full harvest FCI this year.
Robust FCI stock creation means that it can release wheat on the open market if the domestic price spike.
In the fiscal year until 2024. March FCI has spent more than 10 million tonnes of wheat – a record – to crush rising prices. However, lower stocks prevented the sale of large quantities next year, and Indian wheat prices in 2025. At the beginning of the 19th century, they danced to the highest level of all time.
The government now has more confidence in the supply and prices of internal wheat.
India does not intend to reduce or remove 40% of wheat import fee, nor does it consider importing wheat through diplomatic channels as it was discussed earlier, a senior government official said.
“Because of good production and public procurement, we have many quantities,” said the official who refused to be named by quoting the Government rules. “There will be no import.”
At the same time, India does not consider allowing exports, the official said to build shares.
The government predicted that this year the production would be a record $ 115.4 million. Both calculations were performed before April harvest.
According to the Mille Mill’s body, in 2024. India produced $ 105.85 million. Tons of wheat, below the government 113.29 million. Tons of figures. Trade and industrial officials have said in recent years that the estimates of wheat production of the Ministry of Economy are too optimistic and lead to market uncertainty.
“Despite our conservative estimates, we know that production will be about 4 million tonnes higher than last year,” said Navneet Chitlangia, President of the Indian Roll Millers Federation.
(Rajandra Jadhav and Mayank Bhardwaj Reports; Edited by Tony Munroe and Sonal Paul)
