New Delhi, Apr 9 (KNN) India is expected to produce around 105 million metric tons of wheat this year, which is 6.25 per cent lower than the government's estimate of 112 million metric tons for FY24, said Roller Flour Millers Federation of India on Monday.

As the world's biggest wheat consumer and second-largest producer after China, India banned wheat exports in 2022 due to lower output caused by dry weather conditions in 2022 and 2023.

The country is now relying on a bumper harvest to replenish stocks and control domestic prices.

"After assessing the crop across the country, we believe that wheat production will be 105 million metric tons this year," said Navneet Chitlangia, senior vice president of the millers' body.

Last year, India produced a record 112.74 million metric tons of wheat, according to the farm ministry.

However, trade and industry officials claim the actual output was at least 10 per cent lower than the government's estimate.

The lower wheat output forced the government to sell a record 10 million metric tons from its reserves to flour millers and biscuit makers, leading to a drawdown in stocks essential for India's massive food welfare program.

Wheat inventories in government warehouses fell to 9.7 million metric tons at the start of March, the lowest since 2017.

To replenish these depleting reserves, the state-run Food Corporation of India (FCI) is expected to buy 31 million-32 million metric tons of wheat from domestic farmers this year, up from 26.2 million metric tons in 2023.

The FCI has already started procuring new-season wheat, purchasing 1 million metric tons from farmers since early April, compared to 700,000 metric tons during the same period last year.

To ensure the FCI can procure large quantities, India has asked global and domestic trade houses to avoid buying new-season wheat from local farmers.

(KNN Bureau)