NEW DELHI, INDIA — With supplies shrinking, India is considering reducing duties on wheat imports to combat inflation, Bloomberg reported on June 24. The action is being considered even as India’s wheat crop in the 2023-24 marketing year is estimated at a record 110 million tonnes and next year’s output is forecast at 114 million, according to the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

The government also announced it has imposed stock limits of 3,000 tonnes for wholesalers and 10 tonnes for retailers, which will remain in place until March 2025, Bloomberg said.

Part of India’s strategy to combat inflation and maintain adequate supplies has included a ban on wheat exports since May 2022.

In May, India reported that wheat stocks in government warehouses had reached their lowest level since 2008 with a 10% year-on-year drop. The smaller production from the previous two years resulted in the sale of record volumes from the government stockpile to boost domestic supplies and lower local prices.

India, the world’s second largest wheat producer behind China, hasn’t had to import more than 1 million tonnes of wheat since the 2017-18 marketing year. The FAS sees India’s import total more than doubling in 2023-24 to 120 million tonnes and surging to 300,000 tonnes in 2024-25.