As the local domestic supplies and inventory are falling, the wheat crop of India might turn out less than the estimates of the government, more of the grain may be imported by the trader.
As per a report made by Bloomberg, in the crop year 2016-17, with a few traders has given out a median estimate of the wheat crop to be at 91 million tonnes. After 2014-15, the wheat production in the country is estimated to be the lowest and is less that this year’s government forecast of 96.6 million tonnes. During the year 2017-18, the import will reach around two million tonnes and as per the study, this the second highest imports figure in the last eleven years.
In December, The import duty on wheat was completely removed and after that from Australia, Russia, and Ukraine India has been buying wheat. As The El Nino¬ led to a drought, so there is a fall in the wheat production. As the other countries have a good production, this low production will be good for the market.
To meet the domestic demand, Indian wheat production is enough. By 43 percent to 11.53 million tonnes when compared with the stocks a year back, in this February the inventory stock in state-owned warehouses was down.
For restoring the stock, as per a data made by industry, it is said that the government will buy as much as possible from the local market. Even if the import duty on wheat is increased from the present zero percent to as much as 25 percent, It is expected that the private millers may import wheat. Mostly, The South Indian mill owners will need these imports. It is expected that the main supplier of wheat in the next season will be Australia.