India Raises Wheat Purchase Price Amid Monsoon Worries
India has set a new minimum support price for wheat at 2,610 rupees per 100 kg, an increase from last year's 2,585 rupees. The decision was made by Information Minister Ashwini Vaishnaw after a meeting of Prime Minister Narendra Modi's cabinet. This move aims to boost domestic reserves and step up exports, as India is the world's largest wheat producer.
The country relies on irrigation and soil moisture for its single annual wheat crop, planted in October and November and harvested from March. However, patchy and below-average monsoon rains this year have raised concerns about subpar soil moisture levels, which could impact the wheat crop. India recorded its lowest monsoon rains in over a decade during the June-September season, receiving 12.6% below average rainfall.
The government has also increased the domestic rapeseed price to 6,613 rupees per 100 kg, up from 6,200 rupees. A higher output of rapeseed could help India reduce expensive imports of vegetable oils, which account for nearly two-thirds of its demand.