NEW DELHI: India’s wheat inventories are likely to remain above the buffer norm on April 1 despite the ongoing sale of the grain from state reserves, a senior government official said on Wednesday, which has brought down stocks to the lowest level in seven years.
The country’s wheat stocks at state warehouses have dropped to 16.47 million metric tons as of Jan. 1, Ashok Kumar Meena, chairman of the Food Corporation of India told reporters. The Jan. 1 inventories are the lowest since 2017.
“The open market sale scheme (OMSS) has helped in stabilising prices,” said Meena, adding the government has sold 5.8 million tons of wheat to bulk buyers, such as flour millers and biscuit makers, since June 1.
Trades were speculating the OMSS would pull wheat stocks below 6 million tons when the new marketing year begins on April 1, against the norm of a buffer of 7.46 million tons.
Comments
Comments are closed.