Wheat output estimate gap raises speculation concern

Projections by govt, industry vary by 5 MT

- SANDIP DAS

THE PROJECTIONS OF wheat output by the agriculture ministry and the processing industry vary by more than 5 million tonne this crop year, with sources fearing that such a difference may lead to speculation in the market, resulting in a price rise.

Though the variance in estimates is not new, traders say that it often leads to market imbalance. In the past three years, the government's estimates have been higher by 5-8 million tonne (MT) compared with figures projected by flour millers.