In addition to the 3 million tonnes announced last month, the allotment could aid in lowering local prices, which are now higher than the government-set buying price of 21,250 rupees ($256.77) per tonne and increased retail inflation in January.In May 2022, India, which is also the world’s second-largest consumer of wheat, outlawed exports after a rapid and sudden rise in temperatures cut production, even as export demand increased to make up for the worldwide shortfall brought on by the conflict in Russia and Ukraine.
Source: Study IQAfter the government stated last month that the price of wheat will be reduced by almost a quarter, According to a New Delhi-based dealer with a global trading organization, the government has been attempting to drive prices even lower toward the floor price to ensure it can purchase an adequate amount from farmers in the upcoming season.
While open market prices increased above the rate at which the government acquires the grain from domestic farmers, state purchases of wheat dropped by 53% to 18.8 million tonnes last year.
The nation only produces one crop of wheat each year, which is harvested starting in March after being planted in October and November.
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