Wheat stocks held by the Food Corporation of India (FCI) have decreased by 4.7 percent, dropping to 29.91 million tonnes as of June 1, compared to 31.39 million tonnes on the same date last year.
Conversely, rice stockpiles have risen significantly, increasing by 21.8 percent to 50.46 million tonnes from 41.42 million tonnes in 2023. An official from the Food Ministry noted that the higher rice stocks will aid the government in meeting the foodgrain requirements for various programs.
Despite the increase in rice stocks, wheat prices have surged by 7 percent over the past week. The government’s wheat procurement efforts have faced challenges, failing to meet targets in both 2022 and 2023, with this year’s purchases also starting slowly.
The government had imposed a ban on wheat exports in 2022 due to a global shortfall exacerbated by the Russia-Ukraine conflict, despite a rise in export demand. For this year, the Centre has set a procurement target of 37.2 million tonnes and has extended the buying period until June 22.
In an effort to control wheat prices, the central government has conducted several sales in the open market over the past year, resulting in a reduction of its wheat reserves. However, with the Indian Meteorological Department (IMD) forecasting a normal monsoon, the government is optimistic about achieving a bumper crop this year.
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