October 21, 2022

 

India could sell wheat in the open market as it has ample stocks

Sudhanshu Pandey, India's most senior civil servant at the Ministry of Consumer Affairs, Food and Public Distribution said that the country has ample stocks of wheat and rice, and the government could sell wheat in the open market to control prices, Reuters reported.

 

Food inflation increased by 8.60% in September compared to 7.62% in August, making up nearly 40% of the basket of consumer prices.

 

Due to an increase in the cost of vegetables and cereals, retail food prices have accelerated.

 

Pandey said prices for necessities have only increased gradually, and government initiatives have helped keep the price of grains under control.

 

India, the second-largest producer of the grain in the world, banned exports of the staple grain in March after an abrupt rise in temperatures caused the wheat crop to wither. This was done to ensure supplies for its 1.4 billion citizens.

 

India, the second-largest consumer of the food staple in the world, increased its exports of wheat after Russia's invasion of Ukraine reduced supplies from the Black Sea region, which caused a rise in world prices.

 

India restricted rice exports shortly after prohibiting the export of wheat because the country's east was experiencing sparse rains, which had an impact on the planting of the most water-demanding crop.

 

Pandey said wheat stocks in India's state warehouses are anticipated to be 11.3 million tonnes at the start of the upcoming fiscal year on April 1 and rice stocks to be 23.7 million tonnes.

 

To run the largest food welfare programme in the world and accommodate any emergency needs, the government plans to keep at least 4.5 million tonnes of wheat and 11.5 million tonnes of rice on hand as of April 1.

 

-      Reuters