India's February grain stocks more than doubled on bumper harvests and curbs on rice and wheat exports, government sources said on Friday, bolstering the case for select food exports to take advantage of higher global prices. On February 1, wheat stocks were at 19.4 million tonnes, more than double the 8.2-million-tonne target but lower than last month's 21.5 million tonnes.
Rice stocks soared to 27.8 million tonnes against a target of 11.8 million tonnes, higher than January's 25.6 million tonnes. Mounting stockpile of rice and wheat gives the government some cushion when food inflation remains in double digits. India's food price index rose 13.07 percent in the year to January 29, government data on Thursday showed.
But trade and industry officials believe India, the world's second-biggest rice and wheat producer, can afford select food exports. "There is an imminent case for exports of all major food items as India has more than surplus stocks, while there is a strong global demand," said Atul Chaturvedi, chief executive officer for farm business at Adani, the country's biggest exporter of farm goods. Overflowing grain bins have raised storage concerns, forcing the government to take steps to augment warehouse capacities.
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