Domestic prices of wheat are supposed to ease as India’s wheat stocks surged to a three-year high as the new crop year began this month. The stocks have surged over 57% as per official data, which has made the supply of the staple easier, bringing prices down, which shot up to the highest of all times at the beginning of this year. 

Let’s talk numbers

As of 1 April 2025, the wheat stock in the state warehouses stood at 11.8 million metric tons, which is way above the 7.46 million metric tons target of the government. Compared to last year’s production during this time, the stock of wheat is higher by 4 million metric tons. This suggests that even if the government does not meet the buying targets of wheat, there will be ample of supply and the prices can be controlled. 

Coming to wheat buying targets, in 2025, Food Corporation of India (FCI) has a target of buying around 31 million metric tons of wheat. In the previous year, it procured only 26.6 million metric tons while the target was between 30 and 32 million metric tons. 

In the previous three years, the harvest of the crop was low, and thus the wheat stocks were low, and so was the FCI’s purchased wheat in a lower quantity, pushing the prices upward. It even went to a point when many thought that India would have to import wheat for the first time in seven years. However, with this rise in the stocks, that scenario can be avoided as of now. FCI has already started procurement, way before the time it started last year, 2024. 

Rice Stocks Also on Rise

It is not just the wheat; India’s other staple food, rice stocks, are also on the rise. The rice reserves state-wise, along with the un-milled paddy, rose to a record high of 63.09 million tons as per data of 1 April 2025. The government’s target was only 13.6 million tons, which is way lower than the current inventory. 

As the supply is multifold of the target, now the government will push for exporting rice so that they do not have to buy more of the new season crop. Anyway, India is the biggest exporter of rice in the world, contributing to 40% of the global exports of rice.  

Wrapping up 

The food prices especially prices of wheat, were sky high in the previous few months, and now with the ample supply of the staple items and increasing wheat stocks in India, the prices are expected to come down. Moreover, the agricultural sector can boom with more export opportunities and fair prices. 

Source: Reuters

______________________________________________________________________________________

Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.