India will likely lift a 2011 ban on shipments of wheat which allowed only private traders to sell the commodity on the global market.  The country is expected to see its seventh consecutive bumper crop – harvesting more than 100 million tons, exceeding the country’s demand of 76-77 million tons.  After years of experiencing significant wastage due to a lack of proper storage, the country is expected to shift its policy on wheat exports.  Increases of Indian wheat on the global market will be met with lowering prices as worldwide suppliers are raising their forecasts for output. The Indian government buys wheat from farmers at a fixed price stockpiling it to sell at a subsidized price to the poor. As of January 1^st India’s stockpile of wheat equaled 28 million tons – significantly exceeding the country’s stockpile goal of 8.2 million tons.

 

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