Aug. 27 (Bloomberg) -- India, the world's third-largest wheat importer, had 30 percent less grain than targeted in state warehouses last month, signaling it may have to buy more at record high prices to boost emergency stockpiles.

Granaries held 12 million tons of the grain on July 31, less than the 17.1 million tons targeted for July 1, said a government official, asking not to be named.

The shortage comes at a time when global wheat prices are at their highest amid a drop in output in the world's leading growers. Wheat has risen 24 percent on the Chicago Board of Trade since India on July 10 bought 511,000 tons and said it would continue to import to ensure steady supplies.

``Looking at the current global scenario, the offers the government will get this time are going to be much higher than the previous offers,'' said Atul Chaturvedi, president at Adani Enterprises Ltd., by phone from the western city of Ahmedabad.

Wheat for December delivery rose $1.25, or 0.2 percent, to $7.425 a bushel at 6:21 p.m. India time in electronic trading on the Chicago Board of Trade. Prices have almost doubled in the past year.

State Trading Corp., owned by the government, bought wheat from Cargill Inc., Toepfer International and Riaz Trading last month for a record $317 a ton to $330 a ton. India may receive offers of between $375 a ton and $400 a ton in the new tender, Pramod Kumar, executive director of Sunil Agro Foods Ltd., said in an interview last week.

The government has sought to buy an unspecified amount of wheat to boost reserves and cool prices. The tender closes Aug. 29 and State Trading will decide how much to import by Sept. 3.

Boost Reserves

Farm Minister Sharad Pawar said on Aug. 20 the government would continue wheat imports to boost reserves. The government bought 11.1 million tons of wheat from local farmers this year, he said. The federal government buys rice and wheat at assured prices from farmers for resale at subsidized rates.

India was the world's third-biggest wheat importer in the year ended June 1, with purchases of 6.7 million tons, according to the U.S. Foreign Agricultural Service.

To contact the reporter on this story: Pratik Parija in New Delhi at pparija@bloomberg.net.

Last Updated: August 27, 2007 08:56 EDT