July 24, 2007

India optimistic to reach 4 to 5 million tonnes of wheat in April 2008

The government of India is convinced that it will reach the minimum target of wheat stocks by 4 to 5 million tonnes on April 1, 2008, a senior government official said on Monday (July 23).

This year's anticipated higher production and imports would help build the stocks, which the government would like to have before the new season harvest begins, Alok Sinha, managing director of Food Corp. of India.

This year India has bought around 11 million tonnes from farmers and now has total stocks of 13 million tonnes.

Government welfare programmes, under which subsidised grain is made available to the poor, need about one million tonnes a month.

However, Sinha said the government would import more wheat despite foreseen increase in production should emergency arise.

India, the world's second-largest producer of wheat, grows only one crop a year. Sowing begins in the winter months of November and harvest starts in March.

He said higher wheat output estimates for 2007 would cover domestic prices. A sharp rise in prices last year had forced the government to import a total of 5.5 million tonnes in 2006.

The agriculture ministry last week said India was likely to produce 74.89 million tonnes of wheat, up from 69.48 million tonnes in 2006.