The shortage of wheat in India could raise world prices
the Indian traders and millers expect the activation of import of wheat in the country in the near future. This could support global prices, which fell to a ten-year low.
Two lean years resulted in a reduction of grain stocks in India and a record of growth of domestic prices.
this year the country has imported 600 thousand tons of wheat, despite a 25% duty. Market participants hope that the government will reduce or cancel the fee, to increase the income of wheat in the country.
Association of Indian broseman warns that the situation is becoming more alarming, the gap between demand and supply increases and domestic prices are rising. The harvest was much smaller than the official forecast, so it is the revised policy for the import of grain.
Usually, India imports several hundred tons of wheat per year. The last major purchase took place in 2006 when it was imported almost 7 million tons of wheat, which, coupled with poor crops in many countries has led to higher prices.
in recent weeks, Indian importers have gained 52 thousand tons of wheat of Ukrainian origin with delivery in September. Earlier agreements were concluded for the purchase of 90 thousand tons of Ukrainian wheat with delivery in August and 52.1 tonnes for delivery in June.