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India had grain stocks of 31.64 million tonnes on June 1, double the buffer stock requirement of 15.8 million tonnes, a government statement said on Tuesday.
The stocks comprised 12.25 million tonnes of rice and 19.39 million tonnes of wheat, it said.
The country last August stopped providing grains to exporters at subsidised rates after stocks fell due to robust exports and a severe drought in 2002. Till then, the government had sold grains to exporters at rates below the market price to enable them to compete in the international market.
With the stock position improving this year, Indian traders have been awaiting the government's grain export policy on overseas sales.
The statement said state-run procurement agencies led by the Food Corporation of India had bought 21.2 million tonnes of rice as on June 1, compared with 15.43 million tonnes a year ago. Wheat purchases totalled 16.18 million tonnes against 15.49 million tonnes last year.

Copyright Reuters, 2004

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