India's wheat output is expected to drop in 2019 as lower moisture levels and higher temperatures affect the winter-sown crop, analysts said. Indian flour millers imported 1.65 million tonnes of wheat in the 2017/18 fiscal year, down from 5.7 million tonnes the previous year, mainly from Australia, Russia and Ukraine. Output will fall from the record seen last year after the states of Madhya Pradesh and Uttar Pradesh, which account for 45% of India's wheat production, received 10% less rain than usual in Q3. The government has been trying to boost production by increasing water allocations but it faces a tough challenge with farmers saying they are not getting enough water. That could prompt the government to cut import taxes and release stocks from its warehouses.
India's wheat output is expected to drop in 2019 as lower moisture levels and higher temperatures affect the winter-sown crop, analysts said. Output will fall from the record seen last year after the states of Madhya Pradesh and Uttar Pradesh, which account for 45% of India's wheat production, received 10% less rain than usual in Q3. The government has been trying to boost production by increasing water allocations but it faces a tough challenge with farmers saying they are not getting enough water. That could prompt the government to cut import taxes and release stocks from its warehouses.