At the beginning of the new crop year this month, India’s wheat supplies in government warehouses increased 57 per cent to a three-year high, according to official data, allaying supply worries that caused domestic prices to reach an all-time high earlier this year
Even if the state stockpiler, the Food Corporation of India (FCI), fails to fulfill its domestic wheat procurement objective, higher opening inventories will help the federal government control any price rises later this year.
According to the data, wheat stockpiles in state granaries were 11.8 million metric tons on April 1, far more than the government’s goal of 7.46 million tons.
Compared to the same period last year, wheat inventories have increased by more than 4 million tons.
“They’ll still have plenty to sell in the open market even if they miss this year’s wheat buying target like they did last year,” a dealer at a multinational trading company in New Delhi stated.
In 2025, the FCI wants to purchase 31 million tons of wheat from farmers. It only able to acquire 26.6 million tons last year, compared to its objective of 30 to 32 million tons.
Lower FCI purchases and disappointing yields over the last three years have driven up the price of the basic crop and increased concerns that India would have to import wheat for the first time in seven years. Calls for imports have so far been met with resistance from the government.
With FCI purchases significantly higher than those made during the same period in 2024, this year’s wheat procurement cycle is off to a great start. As of April 1, the government’s aim of 13.6 million tons of rice was greatly exceeded by the state’s record 63.09 million tons of rice reserves, including unmilled paddy. According to trade and industry leaders, India would be able to boost exports without sacrificing local supply thanks to the increased rice reserves.
