The Ukraine war has turned India’s agricultural market towards the private sector. Private traders are buying wheat from farmers in large quantities this time. He expects exports to be better than previous years. On the other hand, procurement of wheat by the government at Minimum Support Price (MSP) is slightly slower than last year.
At present, this Rabi crop is being harvested and bought in Punjab, Haryana, Uttar Pradesh, Rajasthan and Madhya Pradesh. The Food Corporation of India (FCI) has also started procurement of wheat, but the data shows a slow start. According to the new data of the Central Food Department, so far the government has procured only 69 lakh tonnes of wheat from 5,86,000 farmers. About Rs 1400 crore (minimum price) has been paid to these farmers.
At the same time, till this period last year, the government had procured 12.6 million tonnes of wheat. In such a situation, these figures indicate the slow pace of government procurement of wheat at present. Typically, FCI and state-owned agencies procure around 60 per cent of the total production of wheat, while 40 per cent is sold in the open markets.
India ready to export worldwide
Due to the Ukraine war, there may be a big shortage of wheat worldwide. In such a situation, India is dependent on surplus collection and bumper crop to bridge this gap. India is looking to export wheat to Egypt, Turkey, the Philippines, several African countries and even Europe amid rising food prices across the globe. On April 15, Egypt, the world’s top wheat importer, approved the purchase of wheat from India. Wheat stocks in the country have decreased due to the Ukraine war.
may decrease yield
Wheat yields may be affected due to drought in North India in March. Farmers say that the drought has damaged the wheat crop.
Punjab: Private traders bought the most in eight years
This season so far the procurement of wheat by private traders is the highest in eight years. Private traders bought 24,400 tonnes of wheat in a single day on Tuesday. So far 3.34 lakh tonnes of wheat has been procured by them. The total arrival of wheat has crossed 67.5 lakh tonnes.
Private traders expect wheat exports to increase. That’s why he is buying wheat fast. In many places they are buying wheat at a price equal to the MSP, while in some places at a slightly higher price. At present the rates remain very competitive. – Ashok Agarwal, Analyst, Comtrade