The authorities has revised the estimate of wheat manufacturing within the 2021-22 crop 12 months (July-June) to 105 million tonne (MT), down from its February projection of 111.32 MT, based mostly on studies that the early onset of summer season in March has adversely impacted crop yield. India’s wheat manufacturing was a file 109.59 MT in 2020-21 crop 12 months.
However, official sources advised FE that they’re retaining an in depth watch on wheat exports and can take a name on if the exports must be curbed later this month. “There is no case for controlling exports of wheat at present,” sources stated.
Food secretary Sudhanshu Pandey stated the decrease output, coupled with non-public buy from the farmers by exporters and merchants holding on to the shares would result in a 55% year-on-year decline in wheat procurement within the 2022-23 advertising 12 months to 19.5 MT. This means the purchases of the cereal by the federal government at minimal assist costs (MSP) would hit a 13-year low this 12 months.
The agriculture ministry will quickly announce the third advance estimate of the nation’s meals grains output for crop 12 months 2021-22, which can embody the estimate of wheat output.
In 2010-11, wheat procurement was 22.5 MT and in 2016-17, it was 22.96 MT. MSP purchases of wheat stood round 17 MT as on Tuesday, down 42% from the year-ago stage.
On the decrease quantity of wheat procurement, the meals ministry has cited elements equivalent to farmers in Madhya Pradesh, Uttar Pradesh and Gujarat promoting to merchants and exporters at round Rs 2,100-2,400 a quintal in opposition to the MSP of Rs 2,015 a quintal, and they’re additionally holding some portions, anticipating increased costs of wheat after some months.
Free ration scheme: Additional 5.5 MT rice allotted to fill wheat hole
The authorities on Tuesday had revised the grain allocation underneath the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) throughout May-September, 2022, due to a pointy fall in wheat shares held with Food Corporation of India (FCI).
As per the revised guideline, through the remaining 5 months of section VI of PMGKAY, FCI will allocate 3.5 million tonne (MT) of wheat to states in opposition to the sooner communication to provide 9 MT of grain.
This transfer to allocate extra rice than wheat got here after the latter’s inventory held with FCI as of May 1 dropped to a five-year low of 31 MT on May 1. “In order to mitigate scarcity-like situation and to ensure availability of sufficient stocks as per stocking norms, it has been decided to revise allocation during May-September 2022,” the meals ministry wrote to states just lately.
The meals secretary stated the federal government has allotted 5.5 MT of extra rice instead of wheat to states for distribution underneath the federal government’s free ration scheme PMGKAY.
Launched in 2020, as a part of the Covid-19 aid measure, 5 kg of grain underneath PMGKAY is supplied free every month moreover extremely subsidised foodgrain to greater than 81 beneficiaries underneath the National Food Security Act.
While India is aiming at exporting greater than 10 MT of wheat in 2022-23, given the decrease stage of procurement and shares held with FCI, the federal government is more likely to regulate exports to keep away from home provide constraints.
Source: www.financialexpress.com”