Bumper output estimates pull down cereal prices in India

FAO food price index up on expected decline in global wheat output

As cereal prices slump in India on estimates of bumper production, the threat of adverse climatic conditions has pushed up their prices in global markets.

Prices of cereals, led by wheat, have reported up to 11 per cent declines in local markets since January. The government’s second advanced estimates a fortnight ago put India’s grain output at a record 271.98 million tonnes in 2016-17, up from 251.57 million tonnes in 2015-16. 

According to the National Commodity and Derivatives Exchange (NCDEX), wheat prices in the Rajkot spot market have declined by 11.03 per cent since January to Rs 1,600 a quintal