Indian harvest may have global impact
Farmers in India, the world's third-biggest wheat importer, are forecast to plant a record crop, helping cap world prices that have soared 64 percent this year.
The area sown to the cereal may exceed 29 million hectares, up from 28.5 million hectares last year, said B. Mishra, head of the Directorate of Wheat Research, a state body that develops high-yield seeds.
A bigger crop will ease pressure on the Indian government to import the grain at record prices.
The country has bought 1.3 million metric tons since July from suppliers including Cargill Inc, and last month set an output target of 75.5 million tons for next year, the most since 2000.
"A bigger harvest would mean less imports and that will obviously impact global prices," said Vijay Iyengar, managing director of Agrocorp International Pte.
Wheat prices on the Chicago Board of Trade set record highs 23 times in the three months ended September 28 after weather hurt crops from Canada to Australia.
Global reserves will fall to 107 million tons from 122.7 million tons last year, the US Department of Agriculture said on October 12.
Record prices prompted the Indian government to raise the minimum price it pays wheat growers for their crop by 18 percent to 1,000 rupees ($25) for 100 kilograms. Wheat accounts for 73 percent of India's winter food grain output.
"The way prices are moving in the international market I'm sure our farmers will sow more and help us achieve our target," Mishra said by phone from Karnal in Haryana, one of the nation's biggest wheat-growing states.
Bloomberg News
(China Daily 10/19/2007 page16)
