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A Reuters explainer describes how India's grain procurement and pricing policies have pushed the Food Corporation of India into heavy debt. It notes that FCI rice and wheat are priced above world levels, so they cannot be exported.
WTO rules also restrict exports of grain meant for welfare programmes.
Because Indian state grain is priced above world prices, it stays out of export markets, limiting supply to world buyers. Any future shift to export-oriented policy could add supply and pressure prices lower.
reuters.comMayank Bhardwaj, Rajendra JadhavDec 29, 2020After 100 past neutral policy events, RICE moved a median +0.0% over 5 sessions (51% higher; middle half -2.6% to +2.3%), and +0.7% over 20.
After 137 past neutral policy events, WHEAT moved a median -0.4% over 5 sessions (43% higher; middle half -1.9% to +1.2%), and +0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
