India's wheat planting rises amid higher domestic prices

Indian farmers have planted wheat on 21.2 million hectares since Oct. 1, when the current sowing season began, up 6% from a year ago, government data showed on Friday, as record high prices and higher soil moisture levels have encouraged planting.

Farmers have also increased acreage under rapeseed, the key winter-sown oilseed, to 7.7 million hectares as of Dec. 2, up from last year's 6.9 million hectares, the Ministry of Agriculture & Farmers' Welfare said in its weekly update.

A prolonged spell of post-monsoon rains in October and November raised soil moisture levels in central and northern India, helping farmers bring in more area under wheat, the main winter crop, farm experts and growers say.

Higher wheat output could encourage India, the world's second biggest producer, to consider lifting a May ban on exports of the grain.

India, also the world's second bigger consumer of wheat, banned exports as a sharp rise in overseas shipments following Russia's invasion of wheat exporter Ukraine raised concerns about local availability as an intense heat wave hit the crop.

Despite the ban, wheat prices have soared to a record high, prompting the government to weigh measures such as the release of state reserves into the open market while axing the 40% tax on imports to cool prices.

Between Oct. 1 and Dec. 2, the total oilseed area touched 8.3 million hectares, up from 7.5 million hectares during the same period last year.

Higher oilseed output will help India, the world's biggest cooking oil importer, to cut expensive purchases of edible oils from Malaysia, Indonesia, Brazil, Argentina, Russia and Ukraine.

In the fiscal year to March 31, 2022, India spent a record $18.99 billion importing vegetable oils, prompting Prime Minister Narendra Modi to voice concerns about its rising bill.