New Delhi: Wheat stocks in India’s central pool have dropped to a seven-year low of 9.7 million tonnes due to below-average procurement for two consecutive seasons.
Per Business Standard, as of March 1, 2023, stocks stood at around 11.67 million tonnes, falling below the desired level of 7.5 million tonnes by April 1, according to buffer and strategic reserve norms.
The last time wheat stocks were below the current levels on March 1 was back in 2017. It had then dropped to 9.42 million tonnes, the business daily reported.
Stocks may swell again as the forthcoming wheat crop is projected to be at a record of over 114 million tonnes, it added.
However, procurement declined significantly in the rabi marketing season of 2022-23, hitting a record low of 18.8 million tonnes due to higher market prices compared to the minimum support price, leading farmers to prefer private buyers over government agencies.
To address the situation, the government began selling wheat to private players in June 2023, with sales surpassing 9 million tonnes by the end of the month, marking a record high, Reuters reported, quoting an unnamed senior government official.
This follows India’s ban on wheat exports in 2022 due to reduced output caused by high temperatures, despite increased global demand resulting from the Russia-Ukraine conflict.
