India refuted the media allegation that it is set to import Wheat foodgrain.
The food and public distribution department of India said today that it has enough wheat supply and refuted a media allegation that the world’s second-largest wheat producer is set to start importing the basic foodgrain.
‘There is no such scheme for wheat imports into India. The country has enough supplies to cover our internal needs, and FCI has enough stock for public distribution’ In response to the news item on Twitter, the Department of Food and Public Distribution wrote.
According to the fourth advance estimate of main agricultural crop production provided by the Union Ministry of Agriculture and Farmers Welfare, wheat production in 2021-22 is predicted at 106.84 million tonnes, up from 111 million tonnes previously announced.
According to a Bloomberg report today, state reserves fell to their lowest level in 14 years in August, according to Food Corp. of India, while consumer wheat inflation is close to 12%.
This comes as Reuters reported earlier this month that India may eliminate a 40% levy on wheat imports and limit the amount of stockpiles traders can retain in order to cool record high domestic prices. If the government does abolish the duty and foreign prices decrease, dealers believe they may begin importing, particularly during the next holiday season, when increasing demand drives up domestic costs.
This year’s blazing weather, along with increasing export demand for wheat amid the Russia-Ukraine crisis, drove wheat prices to record highs, pushing up prices for billions in the world’s second-most populous country, which was already struggling from inflationary pressures. Ukraine and Russia are two important wheat suppliers.
Wheat prices in Indore, considered one of the important mandis, reached Rs 2,400-2,500 per 100 kg, up from Rs 2,000-2,100 before the Ukraine war, according to ANI. Wheat prices typically remain low during this time of year when freshly harvested rabi harvests make their way into physical markets or mandis.
New Delhi had to prohibit wheat exports as well, although it permitted international shipments to countries that requested supply ‘to address their food security demands.’
The present wheat price in India is significantly higher than the Centre’s guaranteed Minimum Support Price of Rs 2,015 per 100 kg, which is an unusual occurrence. Wheat is currently trading in Indore for slightly less than Rs 2,400 per 100 kg. Wheat prices have declined in other areas as well.
According to Bloomberg, wheat prices in Chicago rose to almost $14 per bushel in early March as the European Union’s battle threatened a significant source of worldwide exports. Prices have now given up all of their gains as supply concerns have subsided. They’re back below $8, which relieves some of the strain on poor economies that are trying to feed their people.
The government stated during the recent Parliament session said that there was no scarcity of wheat stock in the central pool.
‘As of 01-07-2022, the actual wheat stock is 285.10 Lakh Metric Tons (LMT), compared to the buffer requirement of 275.80 LMT,’ Union Agriculture Minister Narendra Singh Tomar stated. In response to another question in parliament, the minister confirmed that wheat procurement from farmers has decreased since there has been an increase in private procurement who acquired wheat directly from farmers.
‘Wheat procurement has decreased due to increased purchases of wheat by merchants as the market price of wheat has risen due to the current international geopolitical situation,’ the Union minister added.
‘Moreover, if the farmer receives a higher price than the MSP, they are free to sell their produce in the open market.’
(With agency contributions)