India is set to record wheat output in the current crop year for greater acreage, good weather and fewer crop pest attacks, says Karnal based institute, ‘Wheat Research’ director Gyanendra Pratap Singh.
“Food grain production is likely to reach 115 million tons compared to 107 million tons in the last year, looking at the crop situation in the major growing states of Uttar Pradesh, Madhya Pradesh, Punjab and Haryana,” Singh stated.
As per the industries and analysts reports, bumper production during the rabi season and higher carryover stocks by government procurement agencies must ease the pressure on household budgets. In the last two weeks, wheat flour manufacturing companies have reduced prices by up to 12 percent, offering combo and even free stuff to consumers.
The present crop year will run from July 2020 to June 2021. And according Singh, there have been no reports of any crop diseases or pest attacks this year, and the prevailing weather conditions will contribute to enhanced yields. As per the recent government data, wheat acreage increased by 3 percent to 34.63 million hectares in the previous year.
Adani Wilmar, who sells wheat flour under the brand Fortune, has reduced the retail price of wheat flour by 10 percent over the last two weeks, says Angshu Mallick, Deputy Chief Executive Officer of Adani Wilmar.
‘With expectations of higher crop yields over the prior year, there is pressure on the market and prices remain low, which we have been passing on to consumers. This also helps us push sales in the last quarter,’ Mallick stated “.
Udit Jain, a Delhi-based Rajdhani group, says that the company is offering a 12 percent discount on Rs 245-250 for a 10 kg package of wheat flour. ‘In the long term, prices will see a further fall in May-June when the crop is harvested and the grain dried with moisture content,’ Jain mentioned.
In the meantime, ITC Limited, which sells its wheat flour under it’s Aashirvaad brand, is offering a 100-gram turmeric pack.
Wheat crop harvesting in the country is expected to begin in the first week of March, with major purchases by government agencies for their various social programs and by private operators for the production of maize, flour, dahlia, rawa and suji, which will also be processed to make bread, biscuits, pasta, flour, etc.
The Food Corporation of India and other agencies held 30 million tons of wheat in stock as of 1 February, according to Navneet Chitlangia, Secretary of the Roller Flour Millers Federation of India.’By April 1 the government agencies will have 25-26 million tons of wheat compared to a minimum requirement of 7.5 million tons for strategic and buffer standards. Above and beyond this will be the procurement of wheat for various government schemes, which will keep the prices stable,’ he says.
Since 2016-17, India’s wheat production has steadily increased, and scientists have also attributed it to good seed varieties that can withstand weather peculiarities and are disease-resistance.
Higher food grain production can make India a competitive export market player, apart from ensuring stable domestic prices, told Prerana Desai, Head of Research in Rural and Corporate Services at Edelweiss. However, Desai stated that one must watch for an unexpected rise in temperature or rainfall during the harvesting period in March and April, which could have an adverse effect on the crop position.