September 10, 2007

India's wheat prices stable despite global price increases
 

India's wheat prices have not seen the kind of price increases globally but it would likely be in the market to buy more wheat to supplement its own reserve system, India's parliament was told Friday (Sep 7).

Minister of State for Consumer Affairs, Food and Public Distribution Taslimuddin said retail prices have remained steady for the last six months while wholesale prices has even declined slightly.

The wholesale price for wheat was Rs 1,025 per quintal on August 15 compared to Rs 1,030 per quintal six months ago, he said.

Wheat prices in India are determined by factors such as domestic production, arrivals in the market, quantity of imports, global prices and consumption requirements.

Taslimuddin also said that the decision to import wheat was taken to ensure food security of the country and fulfil the requirement of public distribution system.

Since government procurement fell short by about 4 million tonnes, India has decided to import wheat to supplement its central pool. India has a reserve system of wheat to ensure food security and to carry out welfare programmes.

The minister did not offer a clear answer on whether India would be entering the market at a time of high prices.