India is the third largest producer of wheat across the globe after the European Union and China. Despite the fact, since mid-2016, the country has purchased more than five million tonnes of wheat. This is considered to be nation’s largest annual purchase in a decade.
Thereafter, to meet the supply shortages of two years due to lower production, the country began an import campaign.
As per traders, India is already planning to curtail down on its imports post its harvest in April and the months ahead depending upon the production of wheat this year. Moreover, as the domestic supplies are expected to refill the supplies, the imports will not be more than 200,000 to 300,000 tonnes.
As per the data are shown by Thomson Reuters, since July 1, close to 5.1 million tonnes of wheat has already been packaged for arrival into the country. However, the traders claim it to be close to 5.2 million tonnes.
Moreover, above a million tonnes of wheat has been transported to India in the months of January and February. According to the U.S. Department of Agriculture, India has already bought 6.7 million tonnes of wheat in 2006/07.
It was after witnessing two years of dry weather and unforeseen rains that India started importing wheat during mid last year. Ukraine and Australia have been the nation’s chief exporters and the Indian flour mills have paid about $210-$212 a ton.
However, as per the data released on Friday, Indian wheat future seems to be on a brighter side due to higher crop planting this year compared with last year. The winter wheat planting was up by 7 percent as per the data released on Friday.
Image Credit: harvest plus
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