India's wheat stock hits a 6-year low in December

14 Dec 2022 , 01:35 PM

According to government data released on Tuesday, the amount of wheat held in government warehouses in India for December decreased to the lowest level in six years due to increased demand and dwindling supplies. At the beginning of this month, 19 million tonnes of wheat were stored in state warehouses, down from 37.85 million tonnes on December 1st, 2021.

Since 2016, when stockpiles had decreased to 16.5 million tonnes due to consecutive droughts in 2014 and 2015 that reduced wheat production, the current stocks for December are at their lowest level. The Food Corporation of India’s statistics indicates that the government stockpile decreased by almost 2 million tonnes in November.

Although India, the world’s second-largest grain producer, banned exports in May after being hit by a sharp decline in crop yields, wheat prices have risen in India. Local wheat prices have grown by about 28% since the export ban in May, with the price per tonne ruling at 26,785 rupees on Tuesday. Indian farmers have sown wheat on 25.6 million hectares since the current sowing season began on October 1. This is an increase of 25.4% from the previous year.

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