India will reduce wheat production in 2024, but will harvest a record rapeseed crop

According to Reuters, in 2024, India may harvest a record rapeseed crop due to the increase in sowing areas and favorable weather in the major producing states, which will reduce imports of expensive soybean, sunflower and palm oil.

Compared to the previous season, rapeseed planting areas increased by 5% to 10 million hectares, so its harvest may increase from 11.5 to 11.8-12 million tons, especially since crops are currently in good condition in almost all states.

According to the market participants, the wheat production in the country in 2023/24 MY may reach 107-108 mln tonnes, which will be lower than last year’s figure and the official forecast of the Ministry of Agriculture of India at 114 mln tonnes. the Area under wheat will remain at the level of the previous year, but its yield will decrease due to lack of rainfall.

Traders expect a shortage of wheat supply in the domestic market, as the government has exhausted the reserve stocks and will actively try to restore them. According to the Indian food Corporation, wheat stocks in the country as of December 31 fell to a 7-year low of 16.35 million tons, although a year earlier they reached 17.17 million tons.

wheat Prices on the spot markets in India as of February 16 fell to 26 thousand rupees or 313,21 $/t, which is 16% lower than last year.

Tags: rapeseed, wheat, India