India imports 140,000 T wheat from Aus in FY16

The Dollar Business Bureau

India has imported almost 140,000 tonnes of Australian-origin wheat in the past couple of weeks this year, as the country increased its wheat stock after a poor crop last season.

Indian mills purchased around 60,000 tonnes of Australian wheat in their first international purchases this year. Indian importers have purchased wheat from Australia as well as other countries. Domestic wheat production remained less in 2015 due to unseasonal rain at the time of harvesting.

The country’s total wheat imports are expected to escalate to its highest this season due to unseasonal rain and severe drought due to El Nino phenomenon. .

Recently, the Indian government had increased the duty on wheat imports to 25% for three months to June 30, to secure farmers from inexpensive overseas supplies.

In October last year, the government had increased the import duty to 25% from 10%, because the government had to manage increased wheat imports from the international market and therefore increase domestic wheat consumption.

The Indian government has decided that the standard price for wheat to be sold to private bulk buyers and traders is Rs.1,640 per quintal, which is higher than the minimum support price of Rs 1,525 per quintal, which the government is acquiring from the farmers.

The government agencies have secured 208.11 lakh million tonnes from farmers in May 2016 as compared to 189.27 lakh million tonnes last year.