The Indian government has taken a unique approach to address the issue of high prices by providing 5 million metric tons of wheat and 2.5 million metric tons of rice to bulk consumers, such as flour millers. This initiative aims to increase supplies and stabilize prices, according to a senior government official.
As the second-largest consumer of wheat and rice in the world, India has been making efforts to boost supplies and decrease prices through various measures. These include restricting the export of non-basmati white rice and implementing stock limits on wheat.
The government has confirmed that it has sufficient stocks of wheat and rice, which can be released into the open market to maintain price stability. As of August 1, government warehouses held 28.3 million metric tons of wheat, an increase from the previous year’s 26.6 million tons.
“Hoarding wheat in anticipation of price increases is unnecessary as the government has ample stocks,” said Food Secretary Sanjeev Chopra.
Currently, wholesale wheat prices in India have reached a six-month high due to limited supplies. Chopra urges those involved in the trade not to take advantage of the situation by hoarding wheat.
Furthermore, the government is considering reducing or even eliminating the 40% import tax on wheat and lowering the stock limit for millers and traders. These potential actions were highlighted by Chopra, the highest-ranking civil servant at the federal food ministry.