India’s Wheat Stocks to Remain Above Buffer Levels Despite Sale, Says Government Official
Published on: January 9, 2024.
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India’s Wheat Inventories to Remain Above Buffer Norm, says Government Official
India is expected to have wheat inventories above the buffer norm on April 1, despite ongoing sales from state reserves, according to a senior government official. The country’s wheat stocks at state warehouses have dropped to 16.47 million metric tons as of January 1, the lowest level since 2017.
Ashok Kumar Meena, Chairman of the Food Corporation of India, stated that the open market sale scheme (OMSS) has helped stabilize prices. The government has sold 5.8 million tons of wheat to bulk buyers, including flour millers and biscuit makers, since June 1. However, Meena clarified that despite the OMSS, stocks will not fall below the buffer norm of 7.46 million tons.
India, the world’s second-largest wheat producer, banned exports in 2022 due to a heat wave that curtailed output. Global prices soared after Russia’s invasion of Ukraine. As a result, local wheat prices are ruling above the government-set minimum support price.
Regarding rice, India has been holding sufficient stocks to meet domestic requirements. Rice stocks as of January 1 stood at 18.05 million tons against a buffer norm of 7.6 million tons. However, paddy procurement from the new season crop has been lagging. State-run agencies have procured 46.39 million tons of paddy so far this year, down from last year’s 53.40 million tons.
Despite the slightly lower rice procurement, Meena assured that higher rice stocks will not affect availability.
Source: [Zawya](https://www.zawya.com)
