Low Wheat Procurement

Syllabus: General Studies Paper 3

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.

Procurement this year likely to

• Likely procurement this time: The 18.5 million tonnes (mt).
• This would be the first time that wheat procured from the new crop (18.5 mt) is less than the public stocks at the start of the marketing season (19 mt).
• This is also a 15-year-low. This is the lowest since the 11.1 mt bought in 2007-08.

Reasons of low wheat procurement

• Rise in export demand: Mainly fuelled by 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 now.
• Lower production: 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.

Impact on availability:

• This would affect the minimum operational stock-cum-strategic reserve of government agencies.
• This would also affect the public distribution system, midday meals and other regular welfare schemes.

Farmers Benefit

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.

About Wheat:

• This 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).

Factors leading to increase in Wheat cultivation in India:

• Success of the Green Revolution contributed to the growth of Rabi crops, especially wheat.
• Macro Management Mode of Agriculture, National Food Security Mission and Rashtriya Krishi Vikas Yojana are few government initiatives to support wheat cultivation.