Indian govt Jul 1 wheat stock at 32.3 mln tn, 2 mln tn above buffer norm.

Government had 32.3 mln tn wheat in its stock, up 2.1 mln tn on year and 2 mln tn higher than the buffer norm of nearly 30.0 mln tn, as of Jul 1, a senior official with Food Corp of India said. So far, the procurement of wheat for 2017-18 (Apr-Mar) has been nearly 8 mln tn higher on year, but the rise does not reflect in the stocks, which had plunged to a multi-year low at the beginning of the current marketing year. A major part of the procurement was used to replenish the previous stock following a record wheat output this year. Wheat stocks dipped to multi-year low of 8.6 mln tn as on Apr 1 due to poor output in the past two years and high sales through open market sales scheme. For the 2017-18 marketing year, the government purchased 30.8 mln tn wheat, compared with 22.9 mln tn a year ago. Government stocks, however, may not be sufficient despite a higher procurement. Of the 32.3 mln tn, 7.5 mln has to be marked for buffer, nearly 19.5 mln tn for public distribution system under the National Security Act and 5.0 mln tn under the open market sales scheme.