August 22, 2006

India to import more wheat next March
 

India is expected to import more wheat before the next crop in March as production continues to decline, A.P Singh, a food minister said on Monday (Aug 21).

India has bought 3.8 million tonnes since March this year, after a six-year absence from the market. Purchases were started due to a sharp decline in the country's wheat production.

Indian agencies have managed to secure only 9.2 million tonnes of wheat locally this year, seven million tonnes short of the estimated 16.2 million tonnes as prices have risen above those offered by the government.

Officials have earlier said the wheat is used to maintain a buffer stock for the country's poor and control inflation. Government stocks were estimated at 8.2 million tonnes on Jul 1, nearly nine million tonnes short of the required level of 17.1 million tonnes.

India's wheat is planted in October and harvested in March. The last crop of 69.48 million tonnes was about six million tonnes short of target.