Located in Asia, India is the second largest rice and wheat producer in the world. It harvests bulk volumes of rice and wheat every year and is even the leading rice exporter in the world. However, when it comes to wheat, India fails to rank among the top 10 wheat exporters in the world, as a significant portion of wheat produced is consumed domestically only.
Owing to high consumption needs, India contributes a meager 3% of the total global wheat trade. However, the demand for Indian wheat shot up in the aftermath of the Russia-Ukraine war, which forced the GOI to restrict exports of wheat and wheat flour. The GOI remains concerned about domestic wheat supplies so as to ensure that enough grain remains available for fulfilling domestic needs and with the same view, it restricted exports of wheat and wheat flour in May 2022.
Acting on the same belief, the GOI’s grain handling agency procures bulk wheat directly from farmers annually and this time as well, data suggests that the Food Corporation of India (FCI) has so far purchased over 24 million tonnes of wheat to meet domestic needs.
Data and Numbers
As it seems, India’s food stock appears to be rising this year after witnessing a drop last year. A look at the data reveals that the center’s main grain handling agency, the Food Corporation of India (FCI) has so far procured over 24 million tonnes of wheat for distribution to nearly 800 million beneficiaries and to meet contingencies. The FCI’s wheat procurement has crossed the threshold limit for cereal stocks and as procurement continues, experts believe that India is in a sweet spot to meet food security requirements.
Combining wheat procurements with rice procurements, the state-owned granaries hold well above 55 million tonnes of grains which is more than sufficient for meeting the domestic food needs of the country.
State-Wise Contribution
Punjab has been leading the pack with the highest contribution amongst other states. In terms of volume, Punjab has contributed slightly over 11 million tonnes to state-owned granaries and the state has been followed by other major wheat-growing states like Madhya Pradesh and Haryana which have contributed 6.2 million tonnes and 6 million tonnes respectively.
The Bottom Line
Despite being the second largest wheat producer in the world, India fails to rank amongst the leading wheat exporters owing to high consumption needs and to ensure that adequate supplies remain for domestic consumption by procuring bulk volumes of wheat directly from farmers. Centre’s main grain handling agency, the Food Corporation of India (FCI) procures grain on behalf of the GOI and according to data, the agency has so far procured over 24 mt of wheat this season. Combining this, with the volumes of rice, the state’s granaries hold well over 55 million tonnes of grains and with procurement still on, experts believe that the stocks are well-sufficient to meet the domestic needs of the country.
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