Monday, May 15, 2017

Recent report says nearly 45000 MT wheat was imported last year?  source: India Wheat Imports by Year

Alfonso Llanes
Alfonso Llanes, Master Degree in International Development

Reuters reports that unfavorable weather and dwindling stocks may cause India to import a record volume of wheat over the 2016–17 year.
In two consecutive lower than average monsoon-years , India has been facing drought conditions for this year’s wheat crop and heat waves have added extra stress to the crop. Indian wheat farming depends on sufficient rain water for a successful harvest. Also, the total amount held by the Food Corporation of India (FCI) has fallen each year since 2012 that this government-owned corporation buys and stores much of the country’s wheat crop.
India has been self-sufficient in the past 30 years on average and it has been usually able to produce and stock enough grain to feed its population. But as weather adversities become a predominant theme in a rapid pace to climate change Indian wheat deficit could help flare up scarcity in the world wheat market for 2016/17.
In the past, India reached wheat production volumes near 95 million tons per season, placing it in second place behind China in wheat production. Last year, Indian wheat production suffered a deficit of 7 million tons mainly due to warm and dry weather throughout the growing season. In the balance of the 2015 crop-season 89 million tons was no match for the demand of 94 million tons leaving a gap of 5 million tons that was imported from Australia.

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