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Qatar Tribune
7 days ago
- Business
- Qatar Tribune
No imports needed: India wheat harvest defies speculation
Agencies A strong wheat harvest in India is rapidly replenishing stocks, meaning the country will be able to meet domestic demand without imports this year, contrary to market talk that it would need overseas supplies, and a potential drag on global prices. India banned exports of the staple in 2022 and extended the prohibition as extreme heat shriveled crops again in 2023 and 2024, draining reserves, pushing prices to record highs and fuelling speculation it would need imports for the first time since 2017. But things are improving for the world's No.2 wheat producer, with early state inventory purchases signaling that this year's crop is about 4 million tons bigger than last year's, six industry and government officials said. 'After barely scraping through without imports in recent years, the country finally seems to be out of the woods and free from the fear of having to import wheat,' said Amit Takkar, chief of New Delhi-based farm consultancy Conifer Commodities. The Food Corporation of India, the state stockpiler, has bought 29.7 million metric tons of new-season wheat from domestic farmers - the most in four years - after missing procurement targets for three consecutive years. FCI's total wheat purchases could rise to 32 million-32.5 million tons this year, food minister Pralhad Joshi said earlier this month, adding to the 11.8 million tons in stock at the start of the marketing year on April 1. That stockpile of roughly 44 million tons would significantly exceed FCI's annual requirement of 18.4 million tons to run the world's largest food welfare program, which provides free grain to nearly 800 million people. FCI's surging wheat stocks are sufficient to dispel the prospect of imports that has kept the global trading community guessing, the six industry and government officials said. With the world's second-largest wheat consumer not needing imports, global prices Wv1 for the grain are likely to come under pressure, as output remains strong in top exporting countries such as Argentina, Australia and Canada, while import demand from top consumer China has weakened. Global wheat prices have more than halved from the record highs of 2022, sliding earlier this month to their lowest level in nearly five years. Better weather, higher-yielding climate-resilient seeds, and adequate soil moisture from last year's plentiful monsoon rains helped improve this year's wheat output in India. A nearly 15% rise in wheat prices over the past year - driven by consecutive poor harvests - also encouraged farmers to switch to wheat. Farmers in the central state of Madhya Pradesh, known for premium wheat that goes into pizzas and pastas, said crop yields were higher this year thanks to a milder March. 'The weather was better this year compared to last year,' said farmer Sunil Dubey, as he steered his tractor trolley brimming with brown sacks of wheat into the dusty, bustling wholesale market of Indore.
Kuwait Times
29-05-2025
- Business
- Kuwait Times
No imports needed: India wheat harvest defies speculation
INDORE: A strong wheat harvest in India is rapidly replenishing stocks, meaning the country will be able to meet domestic demand without imports this year, contrary to market talk that it would need overseas supplies, and a potential drag on global prices. India banned exports of the staple in 2022 and extended the prohibition as extreme heat shriveled crops again in 2023 and 2024, draining reserves, pushing prices to record highs and fuelling speculation it would need imports for the first time since 2017. But things are improving for the world's No.2 wheat producer, with early state inventory purchases signaling that this year's crop is about 4 million tons bigger than last year's, six industry and government officials said. 'After barely scraping through without imports in recent years, the country finally seems to be out of the woods and free from the fear of having to import wheat,' said Amit Takkar, chief of New Delhi-based farm consultancy Conifer Commodities. The Food Corporation of India, the state stockpiler, has bought 29.7 million metric tons of new-season wheat from domestic farmers - the most in four years - after missing procurement targets for three consecutive years. FCI's total wheat purchases could rise to 32 million-32.5 million tons this year, food minister Pralhad Joshi said earlier this month, adding to the 11.8 million tons in stock at the start of the marketing year on April 1. That stockpile of roughly 44 million tons would significantly exceed FCI's annual requirement of 18.4 million tons to run the world's largest food welfare program, which provides free grain to nearly 800 million people. FCI's surging wheat stocks are sufficient to dispel the prospect of imports that has kept the global trading community guessing, the six industry and government officials said. With the world's second-largest wheat consumer not needing imports, global prices Wv1 for the grain are likely to come under pressure, as output remains strong in top exporting countries such as Argentina, Australia and Canada, while import demand from top consumer China has weakened. Global wheat prices have more than halved from the record highs of 2022, sliding earlier this month to their lowest level in nearly five years. Imports averted Better weather, higher-yielding climate-resilient seeds, and adequate soil moisture from last year's plentiful monsoon rains helped improve this year's wheat output in India. A nearly 15% rise in wheat prices over the past year - driven by consecutive poor harvests - also encouraged farmers to switch to wheat. Farmers in the central state of Madhya Pradesh, known for premium wheat that goes into pizzas and pastas, said crop yields were higher this year thanks to a milder March. 'The weather was better this year compared to last year,' said farmer Sunil Dubey, as he steered his tractor trolley brimming with brown sacks of wheat into the dusty, bustling wholesale market of Indore. Dubey and many other farmers have sold their entire harvest to the FCI this year. FCI's robust stockbuilding means that it can release wheat onto the open market in the event of a domestic price spike. In the fiscal year to March 2024, the FCI released more than 10 million tons of wheat into the open market - a record - to tame rising prices. However, lower inventories prevented it from selling large quantities the following year, and Indian wheat prices jumped to an all-time high in early 2025. The government is now far more confident about domestic wheat supplies and prices. India has no plans to lower or remove the 40 percent wheat import tax, nor is it considering importing wheat through diplomatic channels, as it had discussed earlier, said a senior government official. 'Because of good production and procurement, we have ample quantities in hand,' said the official who declined to be named, citing government rules. 'There will not be any imports.' At the same time, India is not considering allowing exports, the official said, preferring instead to build stocks. The government has forecast this year's output at a record 115.4 million tons, although the Roller Flour Millers Federation of India has pegged production at 109.63 million tons. Both estimates were made before the April harvest. In 2024, India produced 105.85 million tons of wheat, according to the flour millers' body, below the government's 113.29 million tons figure. Trade and industry officials have in recent years said the farm ministry's wheat output estimates are overly optimistic and create market uncertainty. 'Despite our conservative estimate, we know that production will be around 4 million tons higher than last year,' said Navneet Chitlangia, president of the Roller Flour Millers Federation of India. - Reuters
The Print
29-05-2025
- Business
- The Print
Govt extends stock limits on wheat till March 2026 to check hoarding, ensure food security
The stock limit on wheat has been extended despite a record wheat output of 117.50 million tonnes in the 2024-25 crop year (July-June). The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2025, issued on May 27, will remain applicable until March 31, 2026, an official statement said. New Delhi, May 29 (PTI) The government has extended stock limits on wheat for traders, wholesalers, retailers and big chain retailers across the country till March next year to manage food security and prevent hoarding and unscrupulous speculation. Under the new regulations, traders and wholesalers can stock up to 3,000 tonnes of wheat, while retailers are limited to 10 tonnes for each retail outlet. Big chain retailers can hold up to 10 tonnes per retail outlet, subject to a maximum of 10 multiplied by their total number of outlets across all retail outlets and depots combined. Processors are permitted to stock 70 per cent of their Monthly Installed Capacity multiplied by the remaining months of FY 2025-26. All wheat stocking entities must declare and update their stock position every Friday on the wheat stock portal at which will be migrated to in due course. Entities found not registered on the portal or violating stock limits will face punitive action under Sections 6 and 7 of the Essential Commodities Act, 1955. Those holding stocks above prescribed limits must bring them within permissible levels within 15 days of the notification. Central and state government officials will closely monitor enforcement to prevent artificial wheat scarcity. The Centre has procured 298.17 lakh tonnes of wheat through state agencies and Food Corporation of India up to May 27, 2025, sufficient to meet requirements of the Public Distribution System, Open Market Sale Scheme and other market intervention programmes. The Department of Food and Public Distribution is maintaining close watch over wheat stock positions to control prices and ensure easy availability across the country, the statement added. PTI LUX MR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Gulf Today
28-05-2025
- Business
- Gulf Today
India's wheat harvest defies market speculation
A strong wheat harvest in India is rapidly replenishing stocks, meaning the country will be able to meet domestic demand without imports this year, contrary to market talk that it would need overseas supplies, and a potential drag on global prices. India banned exports of the staple in 2022 and extended the prohibition as extreme heat shrivelled crops again in 2023 and 2024, draining reserves, pushing prices to record highs and fuelling speculation it would need imports for the first time since 2017. But things are improving for the world's No.2 wheat producer, with early state inventory purchases signalling that this year's crop is about 4 million tons bigger than last year's, six industry and government officials said. 'After barely scraping through without imports in recent years, the country finally seems to be out of the woods and free from the fear of having to import wheat," said Amit Takkar, chief of New Delhi-based farm consultancy Conifer Commodities. The Food Corporation of India, the state stockpiler, has bought 29.7 million metric tons of new-season wheat from domestic farmers — the most in four years — after missing procurement targets for three consecutive years. FCI's total wheat purchases could rise to 32 million-32.5 million tons this year, food minister Pralhad Joshi said earlier this month, adding to the 11.8 million tons in stock at the start of the marketing year on April 1. That stockpile of roughly 44 million tons would significantly exceed FCI's annual requirement of 18.4 million tons to run the world's largest food welfare programme, which provides free grain to nearly 800 million people. FCI's surging wheat stocks are sufficient to dispel the prospect of imports that has kept the global trading community guessing, the six industry and government officials said. With the world's second-largest wheat consumer not needing imports, global prices for the grain are likely to come under pressure, as output remains strong in top exporting countries such as Argentina, Australia and Canada, while import demand from top consumer China has weakened. Global wheat prices have more than halved from the record highs of 2022, sliding earlier this month to their lowest level in nearly five years. Better weather, higher-yielding climate-resilient seeds, and adequate soil moisture from last year's plentiful monsoon rains helped improve this year's wheat output in India. A nearly 15% rise in wheat prices over the past year — driven by consecutive poor harvests — also encouraged farmers to switch to wheat. Farmers in the central state of Madhya Pradesh, known for premium wheat that goes into pizzas and pastas, said crop yields were higher this year thanks to a milder March. "The weather was better this year compared to last year," said farmer Sunil Dubey, as he steered his tractor trolley brimming with brown sacks of wheat into the dusty, bustling wholesale market of Indore. Dubey and many other farmers have sold their entire harvest to the FCI this year. FCI's robust stockbuilding means that it can release wheat onto the open market in the event of a domestic price spike. In the fiscal year to March 2024, the FCI released more than 10 million tons of wheat into the open market — a record — to tame rising prices. However, lower inventories prevented it from selling large quantities the following year, and Indian wheat prices jumped to an all-time high in early 2025. The government is now far more confident about domestic wheat supplies and prices. India has no plans to lower or remove the 40% wheat import tax, nor is it considering importing wheat through diplomatic channels, as it had discussed earlier, said a senior government official. "Because of good production and procurement, we have ample quantities in hand," said the official who declined to be named, citing government rules. "There will not be any imports." At the same time, India is not considering allowing exports, the official said, preferring instead to build stocks. The government has forecast this year's output at a record 115.4 million tons, although the Roller Flour Millers Federation of India has pegged production at 109.63 million tons. Both estimates were made before the April harvest. In 2024, India produced 105.85 million tons of wheat, according to the flour millers' body, below the government's 113.29 million tons figure. Trade and industry officials have in recent years said the farm ministry's wheat output estimates are overly optimistic and create market uncertainty. 'Despite our conservative estimate, we know that production will be around 4 million tons higher than last year," said Navneet Chitlangia, president of the Roller Flour Millers Federation of India. Reuters
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Business Standard
28-05-2025
- Business
- Business Standard
Cabinet hikes paddy MSP by 3%, pulses and oilseeds see bigger increase
With the Food Corporation of India (FCI) sitting on huge stockpiles of rice, the Union Cabinet on Wednesday hiked the minimum support price (MSP) of paddy for the 2025-26 marketing season by a modest 3 per cent, the lowest in the last five years. At the same time, the Centre raised the support prices of pulses and oilseeds by a higher percentage compared to the 2024-25 season. The 2025-26 marketing season starts from July 2025. During the 2024-25 season, the MSP of paddy was raised by 5.3 per cent compared to the year-ago period. Since the last many years, the MSPs of oilseeds and pulses have been increased more in proportion to cereals to encourage farmers to switch towards them. The MSP of tur was raised by 6 per cent to ₹8,000 for 2025-26 while urad has been hiked by 5.4 per cent to ₹7,800. The FCI has been sitting on a huge stockpile of rice, estimated at around 60 million tonnes as on April 30, 2025 (includes unmilled paddy lying with millers) against the April 1 buffer requirement of 13.58 million tonnes. Wheat stocks during the same period were pegged at 35.67 million tonnes against an April 1 buffer requirement of 7.46 million tonnes. Among the crops whose MSP was raised the most in percentage terms during kharif 2025-26 compared to the same period this year was ragi. Its MSP was hiked by almost 14 per cent to ₹4,886 per quintal. Last year, too, in kharif 2024-25, MSP of ragi was raised by a steep 11.5 per cent. Ragi is a major crop in the whole 'Sri Anna' complex. 'The hike in MSP of most-cultivated paddy crop is only 3 per cent which is lower than inflation and hike in input cost. The MSP increase of other crops is only for symbolic value without purchase arrangement,' said professor Sudhir Panwar, a former member of the Uttar Pradesh Planning Commission. Meanwhile, the Cabinet's announcement comes amid the southwest monsoon reaching its destination earlier than usual. This is giving a boost to the sowing of kharif crops, which contribute over 50 per cent of India's total annual foodgrain production. 'In the last 10-11 years, there has been a 'massive' increase in the support price of 14 kharif crops in line with the recommendations of the Commission for Agricultural Costs and Prices,' Union Information and Broadcasting Minister Ashwini Vaishnaw said while announcing the decisions of the Cabinet. Among other crops, the MSP of sunflower seeds has been raised by 6.1 per cent in the 2025-26 kharif marketing season to ₹7,721 per quintal while for sesame seeds, it has been hiked by 6.2 per cent to ₹9,846. For nigerseed, the hike was by 9.4 per cent to ₹9,537 for 2025-26. Among cash crops, cotton MSP has been increased by 8.3 per cent to ₹7,710 (medium staple) and by 7.8 per cent to ₹8,110 (long staple), respectively, for 2025-26. The increase in 2025-26 kharif crop MSP is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times the all-India weighted average cost of production. The expected margin to farmers over their cost of production is estimated to be highest in the case of bajra (63 per cent), followed by maize (59 per cent), tur (59 per cent) and urad (53 per cent). For the remaining crops, the margin to farmers is estimated to be at 50 per cent, the minister added. The highest absolute increase in MSP over the previous year has been recommended for nigerseed, followed by ragi, cotton, and sesamum. Crop loans: The Cabinet also approved continuation of the Modified Interest Subvention Scheme (MISS) for 2025-26 under which farmers get short-term credit at affordable rates through their Kisan Credit Cards (KCC). Continuation of the scheme will cost the exchequer ₹15,640 crore. Under the MISS, farmers get short-term loans of up to ₹3 lakh through KCC at a subsidised interest rate of 7 per cent, with 1.5 per cent interest subvention provided to eligible lending institutions.
