India''s wheat stocks jump, exports still below target

NEW DELHI, June 7. - India''s June 1 wheat stocks atgovernment warehouses rose nearly 4 percent to 44.4 milliontonnes from May, government sources said on Friday, as thegovernment struggles to export as much as targeted to reduceinventories. The government-set target was only 4 million tonnes. The government has already allowed exports to cut downunmanageable stocks but shipments have been slow. State-runtraders have sold about 4 million tonnes of the 4.5 milliontonnes permitted last year. But private traders have refused to lift stocks for exportsfrom the state-run Food Corp of Indian, citing a high floorprice. The government in March offered 5 million tonnes directto private traders such as Cargill, Louis Dreyfus and Glencore. New Delhi uses the stocks to distribute cheap grain to itshalf a billion poor people and also holds some in inventory as abuffer for emergencies. The government is trying to expand thesubsidised food programme but parliament is yet to approve. India''s rice inventory on June 1 was 33.3 million tonnesagainst 34.7 million tonnes in the previous month, the sourcesadded. India grows only one wheat crop a year, with harvests fromMarch bumping up stocks. The new season rice harvest begins inOctober, which is then drawn on for distribution in governmentwelfare schemes.