India Wheat Import: Report claims- lowest wheat stock in 14 years, Modi government gave this answer on import India wheat Import Modi government has no plan to buy wheat from foreign countries

[ad_1]

India is the second largest producer of wheat

Despite being the world’s second largest producer of wheat, India has never been recognized as a major wheat exporter. In fact, Prime Minister Narendra Modi said after Russia’s attack on Ukraine in February that India was ready to “feed the world”. However, less than four months later, according to a Bloomberg report, the government may need to consider grain imports. However, the government denied that there are any plans to import wheat as sufficient stocks are available.

Government response

Government response

The Department of Food and Public Distribution on Sunday clarified following media reports that India is unlikely to resume wheat imports. Responding to the ‘wheat import news’, the department said on Twitter, “There is no such plan to import wheat into India. The country has enough stock to meet our domestic needs and FCI has stock for public distribution. There is plenty of stock.” .”

This is the government’s response

Wheat prices

Ukraine and Russia are the world’s two largest wheat suppliers. In India, wheat prices in Madhya Pradesh’s Indore have touched Rs 2,400-2,500 per 100 kg as against Rs 2,000-2,100. Wheat prices generally remain low in August as fresh crops of rubber arrive in the markets. Currently, wheat prices in India are much higher than the centrally fixed minimum support price of Rs 2,015 per quintal.

Apart from ban on export of wheat...

Apart from ban on export of wheat…

Banning wheat exports, the government had said the move was aimed at managing the country’s overall food security as well as meeting the needs of neighboring and other vulnerable countries. The Center has also banned the export of wheat flour (atta) and other related products such as maida, semolina (rava/sirgi), wholemeal flour and resulting flour.

Government statement in Parliament

Government statement in Parliament

Even during the monsoon session of the Parliament, the government had assured that there would be no shortage of wheat stock in the central pool. In a written reply in the Lok Sabha, Union Agriculture Minister Narinder Singh Tomar had said, till July 01, 2022, the buffer standard is 275.80 lakh metric tonnes. He said, the actual stock is 285.10 lakh metric tonnes (LMT). In response to another question, the government admitted that private procurement from farmers has increased. More wheat is being bought directly from the farmers in the private sector.

Wheat is being sold at a price higher than the minimum support price

Wheat is being sold at a price higher than the minimum support price

The Union Agriculture Minister told the Parliament that the government is buying less wheat due to more purchase of wheat by the traders as the market price of wheat has increased due to the current international geo-political situation. Also, if the farmer gets a price better than the minimum support price, he is free to sell his produce in the open market. He said wheat prices above the minimum support price meant the Center had to buy less foodgrains under the price guarantee scheme, as farmers were already charging higher prices for their produce from private buyers.

Burden on the pockets of Indians

Burden on the pockets of Indians

It may be mentioned that PM Modi had taken a vow to feed the world in March. Wheat production in India is at risk of falling due to record breaking heat. Due to reduction in production, the prices have also increased in the domestic market. The price hike has burdened the pockets of millions of Indians who consume items like naan and chapatis.

Ministry of Finance silence on the import of wheat

Ministry of Finance silence on the import of wheat

Due to increasing scarcity and rising prices, the government is now preparing to buy from abroad. Government officials are debating whether to cut the 40% import tax on wheat or help flour millers in some areas to import the grain, people familiar with the matter said, adding there was no private party to the talks. is not This was first reported by Reuters. The report said that the Finance Ministry did not give any response on the import of wheat. Spokesmen for the food and commerce ministries also declined to comment.

Wheat stocks at lowest level in month in 14 years

Wheat stocks at lowest level in month in 14 years

Due to non-bumper production of wheat due to severe heat, the government had banned the export in May. According to a Bloomberg report on NDTV.com, India’s wheat stocks fell to their lowest level in 14 years in August, according to the Food Corporation of India. Consumer wheat inflation in India is close to 12%.

Consider increasing domestic wheat supply

Consider increasing domestic wheat supply

In the report, Nomura Holdings Inc. “Given the war risk premium from global wheat prices, India may consider augmenting its domestic wheat supply through more imports,” said Sonal Verma, economist at Although domestic wholesale wheat prices are lower than global prices, a reduction in import duty will also be necessary to make it a viable option.”

The price of wheat in the United States

The price of wheat in the United States

In early March, wheat neared $14 a bushel in Chicago. The reason for inflation has been attributed to the Russia-Ukraine war. The war threatened global exports. Despite being the world’s second largest producer of wheat, India has never been a major exporter. However, there has never been much importation into India. The country was largely self-sufficient.

Forecast and reality of wheat production

Forecast and reality of wheat production

Officials expect the 2021-22 harvest to be around 107 million tonnes. However, it was estimated to be 111 million tons in February. Traders and flour millers estimate 98 million to 102 million tonnes. In such a case, 107 is considered an auspicious number. Government purchases of wheat for the country’s largest food aid program are expected to be less than half of last year, according to the Food Ministry. This prompted officials to distribute more rice in some states and limit exports of wheat flour and other products.

Low sowing of paddy is also worrying

Low sowing of paddy is also worrying

Wheat is the largest winter crop in India, sown in October and November and harvested in March and April. There are also concerns about rice production in India, which could be the next challenge to global food supply. “Inflation in food grains is a cause for concern due to low paddy planting,” said Sameer Narang, an economist at ICICI Bank in Mumbai, NDTV.com reported. He said that rising food prices are likely to continue for some time.

Also Read - Congress President Election: Not Rahul Gandhi's!  Will the 24-year-old family magic break this time?Also Read – Congress President Election: Not Rahul Gandhi’s! Will the 24-year-old family magic break this time?


[ad_2]

Leave a Reply