The Indian government is confident of achieving the 114 million tonnes (mt) of wheat production target this year as the weather conditions have so far been favourable with no abnormal increase in temperature. However, considering the last two years’ experience, the Centre has asked all the growing States to start procurement on government account anytime from the first fortnight of next month so that maximum possible quantity is bought to replenish depleting stocks.
“We have asked all wheat growing states to begin procurement from March 1, depending on the arrival of the crop. Uttar Pradesh has conveyed its consent to start it from March 1, whereas the season normally begins from April 1,” said Union Food Secretary Sanjeev Chopra. He said the meeting with State food secretaries has been scheduled on February 28 where each State will will share details on the amount of of wheat it will be able to procure.
Addressing media, Chopra said: “The Agriculture Ministry has informed that the targetted production this year is 114 mt and there is no abnormal increase in temperature, so far. If the weather remains same for another 15-20 days, there will be a bumper wheat production.”
Despite projections...
However, despite the Agriculture Ministry claiming good production of wheat in both 2021-22 and 2022-23, the Government missed the procurement target by a big margin. Not only that, even after exports were banned prices could not be brought down to a desired level and the Government managed to check any further spiral through a number of steps including open market sales for processors and select retailers in cooperative sector at subsidised rates.
In most of the chakkis (small wheat flour processing units), atta is sold at around ₹32-33/kg in national capital region of Delhi, whereas the government is selling at ₹27.50/kg in 10-kg bag through cooperatives Nafed, NCCF and Kendriya Bhandar.
Official data show that the pan India average retail prices of wheat declined to ₹30.88/kg (0.68 per cent) in a week as on February 20; while its wholesale prices, too, dipped to ₹2,748/quintal (0.76 per cent). But the negative inflation in wheat is more steep year-on-year – 0.87 per cent in both retail and 1.6 per cent in wholesale as on February 20.