Commodity Update | Stock Trading Tips | India's Wheat inventory rise to 33.1 MT as of Nov 1
As per the records of Food Corp of India, the Indian government had a Wheat stock of 33.1 million tonnes (mln tn) on Nov 01, up from 23.9 mln tn in the year-ago period. The rise of nearly 10 million tonnes in stocks is primarily because of robust procurement this year.
In the month of April, the government procured 35.8 million tonnes of Wheat, around 16% higher on the year. Procurement was higher in all producing states, especially in Punjab, Haryana, Uttar Pradesh, and Madhya Pradesh.
The sharp rise in procurement this year can be attributed to a higher minimum support price. For the 2018-19 marketing season (Apr-Mar), the government fixed the support price for Wheat at 1,735 rupees per 100 kg, up from 1,625 rupees last year.
According to the farm ministry’s fourth advance estimates, Indian farmers likely to harvest a record of 99.7 million tonnes of Wheat in 2017-18.
The government also set a Wheat output target of 100 million tonnes for 2018-19. For the 2019-20 marketing season, the government has announced a support price of 1,840 rupees per 100 kg for Wheat.
According to buffer stock norms, as of Oct 1, the government must have 25.8 million tonnes of food grain under operational stock with 3.0 million tonnes Wheat for strategic reserves.
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