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Indian Wheat imports hit five-year high

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India has purchased some 80,000 tonnes of Australian wheat in recent deals, the biggest amount of such imports by Asia’s third-largest economy in five years. The imports were necessary after unseasonal rains damaged the crop in the Indian subcontinent.

Imports by the world’s second-largest wheat consumer and producer could prop up benchmark Chicago prices. Prices have rallied over 6% in the past two sessions due to concerns that dry weather and rising temperatures could hurt the US winter crop.

Indian flour mills have bought between 70,000 and 80,000 tonnes of Australian prime wheat for the April-May shipment at $260-$265 a tonne, including cost and freight, Reuters reported.

India could be in the market for more imports but large stockpiles in government silos could limit purchases, the news agency added.