February 28, 2008

India seen to import 2 million tonnes of wheat on low buffer stock

India is anticipated to import around 2 million tonnes of wheat due to low carry-over stock and possible drop in wheat output, the USDA said.

The country's buffer stock is estimated to be below 4 million tonnes.

Furthermore, India's wheat output was pegged lower by 1.3 million tonnes at 74.5 million tonnes, compared to the previous marketing year, the USDA report stated.

The drop in wheat production is caused by lower acreage for the crop, declining by 500,000 hectares.

Wheat acreage will significantly fall in the states of Madhya Pradesh, Uttar Pradesh, Rajasthan and Bihar due to poor soil moisture and higher temperatures during sowing, USDA said.