World Crop Trade Eyes India as New Government May Relax Curbs
- Forecast of good monsoon rain this year reduces supply concern
- Industry groups urge administration to cut wheat import duty
Prices of some farm commodities have softened from their peaks, with state agencies also cracking down on hoarding and selling some grains from state reserves.
Photographer: Prakash Singh/BloombergAgricultural markets are on watch for potential shakeups in India’s trade policies after a new government assumes office this month, which could have significant ramifications on global food prices.
The fifth-biggest economy has kept key crops like sugar and some major rice varieties off the global markets for more than a year. Prime Minister Narendra Modi sought to ensure adequate domestic supplies and temper consumer costs ahead of national elections, walking back a pledge to “feed the world” in the wake of Russia’s invasion of Ukraine. It also refrained from cutting a tax on wheat imports to appease farmers, a large voting bloc.