The Indian govt. has asked global and domestic trade houses to avoid buying new-season wheat from local farmers to help the government-backed Food Corporation of India (FCI) procure large quantities to shore up its depleting reserves. Rising wheat prices forced govt. to sell record quantities to boost local supplies, leading to a drop in reserves essential for the world's biggest food welfare programme which entitles nearly 800M people to free grain. According to a new survey of the standing wheat crop conducted by the Roller Flour Millers’ Federation of India and Agriwatch, India's wheat output this year is at 105.7MT, up from last year's 102.9MT and less than the 112MT estimated by the govt. This is particularly critical as India, the world's second-largest wheat producer and consumer after China, confronts rising food inflation and declining central pool stocks of essential food grains. The past two years have seen India's wheat production hit by severe heat waves, leading to reduced domestic supplies and increased prices. Consequently, the govt. has had to release stocks from the central pool to stabilize prices. As of last month, wheat inventories held by the FCI, which maintains the government's granaries, had dropped to 7.71MT. The last time wheat stocks were below this level was in 2008 when it had dipped to 5.8MT. Ironically, at the beginning of the harvest season, rain accompanied with high-velocity wind on 30 Mar led to lodging of wheat in north and south Panjab. Strong winds with moderate rain flattened crops overnight in Amritsar, Faridkot, Fazilka, Muktsar, Bathinda, and Moga districts (SDW Vol. 2 Issue 9, Story 7).
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