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Resource centre on India's rural distress
 
 

More bad news after inflation hits 5-month high: Wheat stocks at 6-yr low, ‘rice output to fall’ -Sayantan Bera

-ThePrint.in

Wheat stocks are half of where they stood in October 2021. Public stocks of rice are nearly double stocking norm, but price outlook depends on actual harvest this season.

New Delhi: Despite the unabated rise in food prices, which drove retail inflation to a five-month high of 7.41 per cent in September, there is limited legroom for the government to intervene in the market by selling public stocks to cool prices. 

Data from the Food Corporation of India (FCI) shows that the government’s wheat stocks stood at 22.7 million tonnes at the start of this month, which is less than half of where they stood in October 2021 (46.8 million tonnes).

Wheat stocks — at their lowest in six years — are just above the operational and strategic buffer norm of 20.5 million tonnes in October. 

Another cause for concern is the Rabi crop of winter wheat which is yet to be planted and will hit the markets only in April 2023. Retail wheat flour prices have already risen 18 per cent year-on-year (as on 13 October).

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