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Ground Report | New Delhi: Wheat price; Indian farmers may benefit from rising wheat prices on the international market due to the ongoing war between Russia and Ukraine.
According to the Times of India report, this will not only give a good price to Indian farmers, but the government will also have to buy fewer crops in MSP, because private buyers will buy more and more crops directly from farmers, so the financial burden will decrease.
Union Food Secretary Sudhanshu Pandey said on Saturday that the government expects India's exports to rise as well due to rising wheat prices. He said that at the end of February, India's food grain export was 66 lakh tonnes. This is the highest export ever in 2013-14, over 65 lakh tonnes. By the end of March, this figure can reach 70 lakh tons.
After Russia's attack on Ukraine, world wheat exports have decreased by 30 per cent, so the price of wheat on the international market is reaching a record.
Currently, the Food Corporation of India (FCI) has a total stock of about 520 lakh tons of food grains, including nearly 240 lakh tons of wheat. This puts the government in a comfortable position to release more wheat from its stocks for sale on the open market. "The food grains we sell on the open market from the central pool are only for domestic purposes and cannot be exported under WTO rules," an official said.
But this helps exporters to ship their stocks from their own procurement once they purchase the FCI grain for the national requirement.
“We expect the export to increase due to the high demand. There is a strong possibility that private actors will buy directly from farmers in large quantities during the upcoming harvest season, particularly in Madhya Pradesh and Rajasthan, where the best quality wheat is produced. This will also have an overall impact on the total procurement target and if the current condition continues, we may end up buying around 350-360 lakh tonnes during the next growing season against the target of 440 lakh tonnes," an official said.
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