As of 1st November, the current stock position for wheat stands at 22.3 million tonnes, slightly higher than last year’s level of 21.9 Mln.tonnes but falling below 33 Mln tonnes and 33 Mln tonnes the 5-year and 10-year averages respectively for the same period. According to the ministry of Agriculture, India, wheat production reached a record high of 113.2 million tonnes in 2023-24. Despite this robust production, Indian wheat prices have surged to unprecedented levels due to lower carry-out stocks, strong demand, constrained supplies, and a delay in government stock releases to supplement the market.
To counter rising prices and improve availability, the government reduced the limit on wheat stocks that traders and millers can hold in September which didn’t help to control inflation. The record-high prices are expected to drive up retail inflation, which hit a 14-month peak in October. If the government begins releasing stocks, supply levels will increase, likely resulting in price moderation as seen in the previous year.
(Source-FCI)
