Wheat traders and the industry remain hopeful tight supplies of the commodity in India could provide a small boost to global prices, and a potential rebound from 10-years lows. Commodity traders expect India to increase international purchases significantly over the coming months as the nation’s wheat stocks are at decade lows, thanks to lower domestic production. India’s domestic prices for wheat are at record-high levels and could climb further this year. A wheat industry expert from India tells Reuters “the supply situation is getting very serious,” and that reviewing import policies may “be a viable and rational option to bridge the gap between demand and supply.” India has already bought near 600,000 metric tons of wheat this year, the most in nine years. But trade experts expect India to reduce or even abolish the 25 percent import tariff to make imports cheaper and ease a domestic supply squeeze.
From the National Association of Farm Broadcasting news service.