With the present yield, grain deficit in India will be obvious. February wheat stocks in the country were 11.53 mln tons or a drop of 43% on the previous year. As a result od this, wheta import will be 2 mln tons – second best ofr the past 11 years.

The authorities will try to complete national stocks by buying 33 mln tons off farmers (+44%). It is believed that even an import tax of 25% will not prevent private companies from importing wheat, especially in the southern parts of the country. Tax increase is expected before the end of the month.