April 23, 2008

India to lessen wheat imports as local purchases surge

India, the world's second-biggest wheat consumer, may only procure 19 million tonnes of the grain from farmers this year, reducing the pressure to import the commodity for a third straight year.

In a conference in New Delhi today (April 23), Agriculture Minister Sharad Pawar said other state agencies, including conglomerate Food Corp. of India, have bought 8.62 million tonnes of wheat from farmers this year.  The government aims to buy 15 million tonnes from farmers this year.

Pawar said imports will be unlikely this year and that reserves are available until 2009.

The South Asian nation imported 1.8 million tonnes of wheat last year with prices at an all-time high to build buffer stocks and ease food price hikes. India's inflation rose 7.14 percent to near a three-year high in the week ended April 5 from a year earlier.

India's wheat output, second only to that of China, may ascend to a record 76.8 million tonnes in the year to June, more than the 74.8 million tonnes estimated in February and up from 75.8 million tonnes last year, according to farm secretary P.K. Mishra.