Wheat prices in India could rise sharply

According to estimates of the Government of India, by early December, domestic wheat stocks in the country amounted to 19 million tons, which is the lowest figure for the last 7 years, Reuters reports.

At the same time, it is noted that this volume of wheat stocks already implies an increase in prices on the domestic market.

Local traders report that Indian farmers have already sold their stocks, and in this regard grain producers are forced to buy wheat at tenders held by the Indian Food Corporation.

The country’s wheat stocks are expected to fall to 6 million tons by the start of the new season (April 1, 2024), which is unsatisfactory compared to the norm of 7.46 million tons for the period.

It should be noted that Indian farmers have already started the wheat sowing campaign and harvesting will begin before March. However, dry weather conditions have created a moisture deficit in the soil and lowered water levels in reservoirs, so while farmers may increase the area planted to wheat, they are unlikely to reach last year’s figures. However, higher world wheat prices may encourage farmers to plant more wheat.

Tags: prices, wheat, India