India, also the world's second-biggest consumer of wheat, banned wheat exports in May 2022 after a sharp, sudden rise in temperatures clipped output, even as export demand picked up to meet the global shortfall triggered by the Russia-Ukraine conflict. (Reporting by Rajendra Jadhav; editing by John Stonestreet)
Messaging: rajendra.jadhav.thomsonreuters.com@reuters.net)) By Rajendra Jadhav
MUMBAI, April 28 (Reuters) - The Indian state has
procured more wheat so far in the current marketing year than
total purchases made in the previous year, two government
officials said on Friday.
Higher procurement will help the world's second biggest
wheat producer bring down wheat prices, which jumped to a record
high earlier this year and lifted food inflation.
Wheat procurement jumped to 19.5 million tonnes as of April
26th, above the more than 18.8 million tonnes procured last
year, said a senior government official who declined to be
named.
"Procurement has gained momentum in the last few days," the
official said.
Rain and hail in March and April damaged India's wheat crop
just before harvesting, forcing the government to ease
procurement norms to rebuild stocks and help farmers, who were
getting lower prices on the open market for the damaged crop.
In all, India plans to buy 34.15 million tonnes of
new-season wheat from local farmers.
In the first half of April procurement gained momentum in
central state of Madhya Pradesh, while in the second half of
this month northern states of Punjab and Haryana contributed
significantly, said another government official.
Farmers have been selling damaged wheat to state-run
procurement agencies and their good quality crop to private
players, said a New-Delhi based dealer with a global trade
house.
"It seems at the current pace, government procurement can
reach 30 million tonnes. That would be enough for the government
to run welfare schemes but won't allow it to lift a ban on the
exports," the dealer said.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.