India’s June-end foodgrain stocks have reached new peaks on account of high procurement and slow stock liquidation. As on July 1, 2019, grain stocks were almost 81 per cent above the buffer stock and strategic reserve norms.
The last time India had more than 70 million tonnes of wheat and rice stocks in July was in 2013, but that included unmilled paddy lying with FCI and state agencies.
April, May, and June are the main procurement months for wheat. Although such high stocks could be good security against any drought-like situation, they pose operational and financial challenges for the government.