Private business and industry are in no rush to buy wheat this year due to unclear signals from the government about the stock limit – whether it will be extended beyond March 31. The industry is also closely watching the government’s move to currently sell wheat (for atta processing) to cooperatives at ₹ 1,750 per quintal, with farmers in Madhya Pradesh and Rajasthan likely to get ₹ 2,700 (compared to the MSP of ₹ 2,275) if states. to carry out a survey promise this year.”Strategies are really complicated with such policies. At the end of the day, we have to do business and if we have to ensure the quality of our products, we have to buy. We cannot completely depend on the Government of India or the Food Corporation like quality wheat is not classified separately in FCI warehouses,” said the head of a leading company.
Earlier purchases than usual
When asked about pre-private sale options, replied that only processors will enter the market due to the fixed stock limit. But they must be careful because the finished products must be sold at a reasonable price, The ability of private business to buy any amount of wheat in Rajasthan and Madhya Pradesh depends on the price the state government pays farmers, another industry official said.The center planned to buy wheat earlier than usual in mid-March, because due to the end of grain stocks they want to buy as much grain as possible this year. For the last two consecutive years, FCI missed out on purchases due to lower wheat yields in India. The food ministry is likely to convene a meeting of food ministers this month to assess preparations for wheat procurement when it is expected to begin in February. “We have our infrastructure ready so that farmers can get it every time the crop starts to reach the market,” said the official source, adding that the moisture content can be slightly reduced if necessary.
Production target
While the government has claimed that wheat production in 2022-23 will increase from 107.74 million tonnes in 2021-22 to over 110 million tonnes (mt), private trade has pegged it at a maximum of 105 million tonnes .The Ministry of Rural Affairs has set a target of 114 million tonnes of wheat production for the years 2023-24. After crossing the season’s normal area of 307.32 lh, the all-India wheat area reduced the deficit against the ear by about 4 lh till December 29. The latest data show that the wheat cultivation area reached 320.54 lh, a year earlier it was 324.58 lh, which is a percentage decrease. The deficit was 2 percent as of 22.12. Until. As the government has already sold more than 5.5 million tons of wheat in the open market and is set to sell 10.1 million tons by March 31, retail prices are under control. FCI was able to sell at an average of ₹ 2,181/cent against a base price of ₹ 2,129 in last week’s auction.