India to stop wheat import as stocks rise

India, the world's third-biggest importer of wheat last year, may refrain from purchasing more of the grain as it has sufficient supplies to meet demand, likely cooling global prices that have doubled in the past year.

"As of today, we don't need to import'' more, Agriculture Minister Sharad Pawar told reporters today in New Delhi. "Our stocks are adequate to manage demand.''

India expects to have 5 million tonnes of stockpiles by April 1, more than the 4 million needed for emergencies, Food Corporation of India said last week. The country may have to import 5 million tonnes of wheat by June next year, Pawar said July 16.

"Stocks are comfortable at present and it definitely makes sense to not to add fuel to fire,'' Atul Chaturvedi, president of Adani Enterprises, the country's largest private trader of farm commodities, said.

Prices of wheat reached a record last week as dry weather damaged crops from Canada to Australia and demand increased from Egypt to India. A decision by India, the world's second-biggest consumer of the grain, to hold back from buying more wheat may help curb gains in prices. The South Asian nation bought 1.3 million tonnes in the past two months.

Wheat futures for December delivery fell as much as 14.75 cents, or 1.7 per cent, to $8.5425 a bushel. The contract was at $8.57 a bushel, down 1.4 per cent, in after-hours electronic trading on the Chicago Board of Trade. Earlier, it rose as much as 0.8 per cent to $8.7575 a bushel.

India held 10.9 million tonnes of wheat in state warehouses on September 7, sufficient to last until July, Food Corp. said last week.

The government-owned company is the nation's biggest buyer of grains from domestic farmers.

The country aims to produce 75.5 million metric tonnes of the grain next year, the most in seven years, the government said September 14. The South Asian nation probably produced 74.9 million tonnes in the year ended June, compared with 69.35 million tonnes a year earlier, the government said earlier this year.

Sowing of wheat, which accounts for more than 73 per cent of India's total winter food grain production, begins in October. Harvesting starts in April.