Is india facing a wheat shortage?
Wheat production in india has not been good for the last three years. Wheat stock in government warehouses has fallen to the lowest since 2007-08. The government of India had banned wheat exports in May 2022 so that there is no shortage of wheat in the country. Despite the ban on wheat exports, wheat prices in the country remain high.
Wheat stock in government warehouses has fallen to the lowest in 16 years. The government of india has sold a record amount of wheat to increase the supply of wheat in the country and reduce prices. According to data from the Food Corporation of india (FCI), only 75 lakh tonnes of wheat was left in government warehouses on april 1, while last year it was 83.5 lakh tonnes. In the last 10 years, on april 1, an average of 1.67 crore tonnes of wheat was in stock.
Wheat shortage: government sold record stock
Despite the shortage of wheat in india, the government sold a record 1 crore tonnes of wheat last year to control prices. Although there is a shortage of wheat in the country, the government is not promoting imports. The government has not reduced or abolished the 40% tax on wheat and is also not buying wheat directly from countries like Russia.
Instead, the government is selling wheat from its stock so that the supply of wheat in the market increases and prices come down. The government is selling wheat to bulk buyers like flour mills and biscuit making companies. But this time there is a ray of hope.
Indian farmers have cultivated wheat on more land this time. Due to good rains, the soil is moist and there is plenty of water in the reservoirs. Apart from this, the winter is likely to be long due to 'La Nina', which is good for the wheat crop.
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