India's Sept 1 grain stocks way above targets: sources

India's wheat stocks at government warehouses on September 1 were 35.5 million tonnes, more than double the official target for the quarter ending this month, government sources said on Tuesday.

Milled rice inventory for the same period was 17.3 million tonnes against a target of 9.8 million tonnes.

Bumper harvests since 2007 have led to huge stockpiles of rice and wheat with government agencies. These stocks have also helped cushion the blow of a weak start of the four-month annual monsoon rains this June.

To get rid of some of the surplus stocks, the government has allowed private traders to export wheat and non-basmati rice.

Besides, it had shipped out nearly 7 million tonnes of wheat from its warehouses in the recent past. On August 1, stocks of wheat were at 38.2 million tonnes, while those of rice were 19.3 million tonnes.

The government buys grains from farmers for programmes that try to ensure cheaper food for the poor and to meet emergencies.

Since 2009, the government has also been keeping an additional 3 million tonnes of wheat and 2 million tonnes of rice as strategic reserves in addition to the monthly stocks.