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India's grains stock substantially higher than targets
Nov 11, 2014

India had 30.1 million tonnes of wheat in government warehouses as of Nov. 1, government officials said on Monday, more than double the official target which raises the prospect of overseas shipments from the world's second-largest producer.

Bumper harvests since 2007 have led to huge stockpiles of rice and wheat with the government, which buys from farmers to meet emergencies and for welfare programmes providing subsidised food to the poor.

India's milled rice inventory at the beginning of November was 13.7 million tonnes against a target of 7.2 million, the officials said on condition of anonymity.

The stock positions have helped cushion the blow of a weak start to the four-month annual monsoon rains in June and curb food inflation that plummeted to a near three-year low of 3.52 percent in September.

India in 2011 lifted a four-year-old ban on wheat and non-basmati rice exports to offload the grains from its bulging bins. The country has shipped out nearly 7 million tonnes of wheat from its warehouses in the past few years.

Since 2009, the government has kept an additional 3 million tonnes of wheat and 2 million tonnes of rice as strategic reserves in addition to the monthly stocks.


Economic Times