Low Wheat Procurement ? Reasons and Impact

Low Wheat Procurement – Reasons and Impact

News: Wheat procurement by government agencies is set to dip to a 15-year low in the current marketing season, from an all-time high scale last year.

Reasons for low procurement?
• Export demand has risen owing to the Russia-Ukraine war. The war has led to skyrocketing prices and a further increase in demand for Indian grain.
• Farmers find it more profitable to export wheat now.
• The sudden spike in temperatures from the second half of March when the crop was in the grain-filling stage, with the kernels still accumulating starch, protein and other dry matter has taken a toll on yields.

How will it help the farmers?
• Farmers will certainly benefit from the scenario as they are being offered a price above the MSP. Amid the Russia-Ukraine crisis, new markets in countries like Israel, Egypt, Tanzania and Mozambique have opened up for India.
• However, on the other hand, if private traders continue to buy above MSP, eventually that could stoke inflation.

Prelims perspective about Wheat:
• It is the second most important cereal crop in India after rice.
• Wheat is a rabi crop that requires a cool growing season and bright sunshine at the time of ripening.
• Temperature: Between 10-15°C (Sowing time) and 21-26°C (Ripening & Harvesting) with bright sunlight.
• Rainfall: Around 75-100 cm.
• Soil Type: Well-drained fertile loamy and clayey loamy (Ganga-Satluj plains and black soil region of the Deccan).