Reuters reported that India’s wheat stocks in government warehouses on May 1 reached their lowest level since 2008, with a 10.3% year-on-year drop.
Two years of low crops resulted in the sale of record volumes to boost domestic supplies and lower local prices.
According to the state-run Food Corporation of India, wheat reserves at the start of the month totalled 26 million tonnes, down from 29 million tonnes at the same time a year ago.
Inventories in May were higher than April’s stock of 7.5 million tonnes following new season purchases.
Reuters reported that the government has resisted pressure to encourage imports by cutting or removing the 40% tax on imports or by buying directly from leading suppliers such as Russia. Instead, it has opted to dip into state reserves to sell to bulk consumers, such as flour millers and biscuit makers.
The Food Corporation of India started selling wheat to private players in June 2023 and has sold a little more than 10 million tonnes so far, a record from state reserves.