India's wheat stocks down 57% Y-O-Y; Lowest in 6 years

India's wheat stock has dropped by 57% YOY to 8.345 million metric tonnes (MMT). This is a 6-year low. As per data from Food Corporation of India, last year, in April, the wheat stocks in the country stood at 18.9 MMT.

As per Dainik Bhaskar, it is only the second time in a decade that the opening stock of wheat in the country has fallen below 8.5 MMT. Though unseasonal rains could be a reason, the newspaper reported that these rains did not lead to significant crop losses. Experts believed that a 25% to 30% crop loss was imminent due to the rain. However, the loss was limited to just 10%.

Last year the procurement target was initially kept at 44.4 MMT, which was later reduced to 19.5 MMT. However, the final procurement was only 18.792 MMT. This procurement was the lowest in 15 years.

As per Business Standard, Public Distribution System (PDS) data shows that the government distributed an average of 40 MMT of wheat in the last three years. The current wheat stock is 8.345 MMT, and the government intends to procure 34.15 MMT this year.