The last time wheat stocks were below the current levels was way back in 2008. It had then dropped to 5.8 MT in April in that year.
India’s wheat output in the 2023-24 crop year (July-June) is projected close to 106 million tonne (MT), up 3% on year, according to a survey by a trade body which is against the government estimate of a record 112 MT. That means trade expects the output to be 5% lower than forecast by the government.
The roller flour millers federation of India and Agri-watch crop survey released on Monday has stated that wheat output in 2023-24 is projected at 105.79 MT while the overall acreage of the crop is up 1% as compared to last year at 33.98 million hectare on year.
The yield of wheat is projected to increase by 2% to 31.13 quintal/acre in 2023-24 on year. The survey has stated wheat production in Haryana and Uttar Pradesh is projected to rise while output in Maharashtra, Gujarat and Rajasthan has declined.
Meanwhile, official sources said that the government wheat procurement drive by the food corporation of India (FCI) and state agencies for the 2024-25 crop marketing season (April-June) has crossed 1.22 MT since purchase under the minimum support price (MSP) officially commenced on April 1.
During the corresponding period in the previous marketing season, around 0.7 MT wheat was purchased from farmers.
“We are aiming to purchase more than 30 MT of wheat in the current season from the farmers,” Ashok Meena, Chairman and Managing Director, FCI told FE. In the 2023-24 marketing season, the government agencies purchased 26 MT of wheat under MSP operations.
Currently, the FCI has a wheat stock of 7.88 MT, against a buffer of 7.46 MT for April 1. Wheat stocks in the central pool fell to a 16-year low of 7.73 MT on April 1 due to low procurement for the last two years, and aggressive sale of grains in the open market by FCI this fiscal.
The last time wheat stocks were below the current levels was way back in 2008. It had then dropped to 5.8 MT in April in that year.
FCI annually requires around 18 MT of wheat annually for distribution of grain under the free ration scheme – Pradhan Mantri Garib Kalyana Anna Yojana. “We need sufficient stock to carry out open market sale of grain to the bulk buyers next year,” an official said
Source:financialexpress.com