India appears to be failing to fulfill its earlier promise to become a major grain exporter. Due to disappointing harvests, the country might even consider having to source grain from elsewhere, sources reported to Reuters news agency.
Shortly after Russia’s invasion of Ukraine, Indian Prime Minister Narenda Modi declared with gusto that India was ready to “feed the world”. Just four months later, the opposite seems true. Due to the record-breaking heat wave that ravaged India this spring, the grain harvest is not as high as expected. Reduced production has caused prices to rise locally, making everyday life more expensive for hundreds of millions of Indians. They use grain to make staple foods like naan and chapati.
After the first indications that the wheat harvest would not be as high as previously estimated, grain exports were already limited. State reserves fell to their lowest level in 14 years in August. Wheat has become about 12 percent more expensive for consumers. With the looming shortage and rising prices, the authorities are now preparing to buy wheat elsewhere.
Government officials are currently in talks on whether or not to lower or abolish the 40 percent import tax on wheat to help flour manufacturers in some regions import grain. However, India’s food minister said in a message on Twitter on Sunday that there are no plans for grain imports and that there are sufficient stocks.
Although India is the second largest wheat producer in the world, it has never been a major exporter. It also never imported much. The country was virtually self-sufficient. Authorities now estimate that the 2021-22 harvest will be around 107 million tons, up from an estimate of 111 million in February. The new estimate may be a bit too optimistic, as traders and flour manufacturers predict yields of 98 million to 102 million tons.
Free unlimited access to Showbytes? Which can!
Log in or create an account and don’t miss out on any of the stars.