India is projected to yield 105 million metric tons of wheat this year, as indicated by the Roller Flour Millers Federation of India on Monday. This estimate stands 6.25% below the government’s forecast of 112 million metric tons for 2024.
As the world’s second-largest wheat consumer and grower after China, India has imposed export bans in 2022 to focus on bolstering stocks and stabilizing local prices following adverse weather conditions that impacted crop yields in the previous years.
Navneet Chitlangia, Senior Vice President of the Roller Flour Millers Federation of India, highlighted that after assessing the nationwide crop situation, the expected wheat production for the year is 105 million metric tons.
In 2023, India achieved a record wheat production of 112.74 million metric tons, as reported by the farm ministry. However, industry experts suggested that actual production was around 10% lower than the government’s estimate.
The lower wheat output necessitated the government to release a record 10 million metric tons of wheat from reserves to meet demand from bulk buyers like flour millers and biscuit manufacturers, leading to a decline in essential reserves for the nation’s significant food welfare program.
With wheat inventories in government warehouses dropping to 9.7 million metric tons in early March, the lowest since 2017, efforts are underway to replenish these reserves. The Food Corporation of India (FCI) plans to procure 31-32 million metric tons of wheat from domestic farmers this year, an increase from 26.2 million metric tons in 2023.
To support this procurement drive, India has advised global and domestic trade entities to refrain from purchasing new-season wheat from local farmers, aiming to facilitate the FCI in acquiring substantial quantities to enhance its reserve levels.