Wheat shortage forces mill closure in India
October 01, 2003
by Emily Buckley
BANGALORE, INDIA — Flour mills in India’s southern states have been running at less than 50% capacity, as more than 200 mills have not received wheat from the Food Corporation of India (FCI) in eight months, according to a report in The Hindu. Several small flour mills have been forced to close.
Some mills have been procuring wheat from the open market, but rising wheat prices prompted the Confederation of Flour Mills of Southern States to request the 50% duty on wheat imports be dropped, as millers fear wheat stocks are insufficient and imports will be needed.
Considering the supply-demand position, India’s government said it would stop exports, although a 30,000 tonne wheat shipment was announced in early September.