Wheat procurement will drop by more than half as exports rise, according to the US Department of Agriculture’s Food Secretary.

Food Secretary Sudhanshu Pandey said on Wednesday that the government’s wheat procurement will drop by more than half to 19.5 million tonnes in the current Rabi marketing year, due to higher exports and a likely drop in output, and that there will be no concern about meeting domestic demand under the Public Distribution System (PDS).

The secretary also ruled out the prospect of imposing any restrictions on wheat exports, citing the fact that farmers are receiving greater prices for their produce than the Minimum Support Price (MSP).

Mr Pandey, speaking at a press conference here, said, “We don’t see why there should be any restrictions on exports. Wheat shipments have resumed, with the government assisting the traders.”

India’s wheat is finding new export markets in Egypt, Turkey, and some European Union countries. The cargoes are being facilitated by APEDA, an agri-export promotion organisation, he said.

Private merchants have committed for 4 million tonnes of export for the current quarter, according to Mr Pandey, with 1 million tonnes already despatched.

He added that Indian traders have a window for exports until June, when Argentina’s wheat crop arrives, increasing global availability and easing pressure on India.

In the fiscal year 2021-22, wheat exports reached a new high of 7 million tonnes.

Farmers are selling their produce to private actors for more than the MSP, the secretary said, citing increased demand for wheat for export. As a result, government entities have reduced their buying.

He said that the drop in government procurement benefits farmers since they are obtaining greater prices than the MSP supplied by government entities.