October 2, 2006

India to limit wheat imports soon

India, which is expected to buy 6 million tonnes of wheat this year, said it would stop importing once the stockpile reaches comfortable levels, agriculture minister Sharad Pawar said last week.

India, the world's second-biggest wheat producer, began importing wheat in February after a six-year gap. Government agencies have so far contracted to buy 5.5-million tonnes of wheat and overall purchase for this year is expected to hit 6 million tonnes.

India's huge purchases have raised world wheat prices by almost 35 percent in a season that saw reduced outputs from many wheat-producing regions due to high temperatures.

India's buffer wheat stock was said to be at four million tonnes as of April 1, enough to meet its emergency needs for public distribution and other emergencies.

Wheat output in the country fell to 69.4-million tonnes this season ended June, below an estimated production of 73 million tonnes. To make up for the shortfall, the government started wheat imports and allowed private buying duty-free until the end of the year.