Source: Ukragroconsult (Ukraine)
India is facing unusually warm weather and insufficient rainfall, which is fraught for the wheat crop and could lead to shortages in the domestic market. Rainfall in the country’s main wheat region has been 80 percent below normal since the start of the year, and January was the third warmest since 1901, Bloomberg reported.
Forecasters predict the warm and dry weather will continue for at least another month, which could significantly reduce yields. This is a cause for concern as the country’s grain stocks are already approaching their lowest level in 16 years. Therefore, the government may consider reducing or eliminating the 40% import duty on wheat to make imports more attractive to flour millers.
Despite the warm weather, the area under wheat this year is up 2% on last year to 32.5 million hectares. However, farmers fear that a further rise in temperatures could cut yields by more than 20%, although normal conditions in March could prevent serious losses.