Indian Wheat Concerns

India’s wheat reserves are down 10.3% year-over-year due to lower crops in the past two years and record sales from state reserves to control domestic prices. Despite the tight supply, the government has not resorted to imports; instead, it has opted to sell from state reserves. The Food Corporation of India, with its efficient sales strategy, commenced the sale of wheat to private players in June 2023 and has achieved a record amount of sales. While the current May stocks are lower than last year, they are still above the government’s minimum requirement. India failed to meet its wheat purchase target in 2022 and 2023, and this year’s purchases have also started slowly. India banned wheat exports in 2022 despite increased global demand due to the Russia-Ukraine conflict.

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