Wheat stocks for December within government warehouses are the lowest they've ever been since 2016 while prices are at a record high, data shows.
India is the second-largest producer of wheat in the world and also the biggest consumer of the commodity.
Government data released on Tuesday showed that wheat reserves were at 19 million tonnes on December 1 compared to last year's 37.85 million tonnes.
Wheat stocks have depleted by 2 million tonnes since November, per the data.
Food Secretary Sanjeev Chopra told CNBCTV-18 in November that India's wheat procurement in 2022 is likely to be more than last year.
According to Reuters, Indian farmers have planted 25.6 million hectares worth of wheat since October 1.
Last time wheat reserves were this low was in 2016 when the country had suffered back-to-back droughts in 2014 and 2015 harming crop yield.
The price of wheat has increased by around 27% since the country banned exports in May and reached a record of Rs 26,500 per tonne in November.
A Mumbai-based dealer told Reuters that the government cannot release more than 2 million tonnes in a month to bring prices down.
Sources suggested that one way to mitigate this shortage could be to drop the 40 percent wheat import tax.
With inputs from Reuters.
First Published: Dec 14, 2022 2:07 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Feroze Gandhi to Rahul Gandhi: Rae Bareli's tryst with Congress
May 3, 2024 11:36 AM
Rahul Gandhi to contest from Raebareli, close aide KL Sharma from Amethi
May 3, 2024 8:39 AM
BJP's Hindi heartland dominance faces test in phase 3 polls
May 2, 2024 9:14 PM