Commodity Outlook – Wheat

Sowing period: October
Harvesting period: April to May
Crop season: Rabi

Key growing locations:

  1. Madhya Pradesh – Ujjain, Ratlam, Dhar, Sehore, Indore
  2. Rajasthan – Kota, Baran, Chittorgarh, Bundi, Jhalawar
  3. Uttar Pradesh – Kanpur, Varanasi, Agra, Bahraich, Hardoi
  4. Maharashtra – Mumbai, Vashim, Dhule, Akola, Nandurbar
  5. Gujarat – Rajkot, Sabarkantha, Dahod, Junagarh, Ahmedabad

Production trend and Stock position:

  • As per the Ministry of Agriculture third advance estimate released on May 25, 2021, Wheat production for FY 2020-21 was 108.75 million metric tonne (MMT) compared to FY 2019-20 which was 107.86 MMT, up by 0.83 percent
  • Government has fixed Wheat procurement target at 433.50 lakh metric tonnes (LMT) for 2021-22 which is up by 11.17 percent compared to 389.930 LMT in 2020-21
  • As on July 4, 2021 total Wheat procurement stood at 433.32 LMT for Rabi Marketing Season (RMS) 2021-22 from thirteen states and union territories, wherein the Food corporation of India (FCI) had procured 37.69 LMT and State Agencies procured 395.63 LMT
  • About 49.16 lakh farmers have already been benefitted with MSP value of ₹ 85,581.02 crores from the ongoing RMS procurement operations
  • According to FCI, there were about 19,036 Wheat procurement centres during the ongoing 2021-22 Rabi marketing season
  • According to Directorate General of Commercial Intelligence and Statistics (DGCIS) India’s overall export of Wheat in 2020-21 was 20.88 LMT valued at ₹ 4,037.60 crores
  • The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) which was announced in 2020, is being re-implemented given the worsening situation due to the sever impact of Covid-19. Government has extended its time period till November 2021 to provide 5 kg additional food grains for free to PDS beneficiaries under the National Food Security Act, 2013 (NFSA)

Monsoon Update

For the country as a whole, cumulative rainfall during this year’s monsoon season till August 4, 2021 is below Long Period Average (LPA) by 2 percent. Details of the rainfall distribution over the four broad geographical regions of India are given below:

Market commentary: Price outlook

  • The Government had increased the Minimum Support Price (MSP) of Wheat by 2.60 percent to ₹ 1,975 per quintal for marketing season 2021-22 compared to ₹ 1,925 in 2020-21
  • Wheat prices have had a slight upward movement and are likely to trade rangebound with firm bias in the immediate/short term due to the imposition of the PMGKAY scheme once again
  • Overall prices of Wheat have been trading below MSP

More Articles for You

Enhancing Indian Agricultural Resilience with NICRA!

Climate change has impacted the globe and is continuing to do so! The G20 Summit has also called for Eliminating …

Castor Commodity Insights

Current Market Developments: Since mid-March castor seed prices have been pressurised by higher supplies against steady demand from castor crushing …

यूपी सरकार की जीआईएस कमांड सेंटर का नेतृत्व करेगा एग्रीबाज़ार

कृषि क्षेत्र को बढ़ावा देने और किसानों को अधिक सशक्त-समृद्ध बनाने के लिए भारत सरकार निरंतर अहम कदम उठा रही …

agribazaar’s initiative to enhance Uttar Pradesh’s agricultural potential!

Did you know that Uttar Pradesh is India’s top farming state with a total gross cropped area of 25.415 million …

WhatsApp Connect With Us