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Government grain stocks held by India's Food Corporation of India (FCI) keep growing as open-ended procurement of wheat and rice continues. Haryana mandis briefly shut to paddy farmers before reopening, and a farm-cost commission has urged a review of the procurement system.
The article ties the stock burden to inadequate food subsidy budgets and fiscal deficit concerns.
Large state stockpiles cap domestic wheat and rice prices and make export surpluses more likely, which pressures world prices lower. Any shift away from open-ended procurement could eventually tighten or redirect supply.
business-standard.comSanjeeb MukherjeeNov 13, 2019After 122 past bearish policy events, WHEAT moved a median -0.3% over 5 sessions (44% higher; middle half -1.9% to +1.2%), and +0.4% over 20.
After 100 past bearish policy events, RICE moved a median -0.1% over 5 sessions (49% higher; middle half -1.7% to +1.6%), and +0.1% 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.
