Wheat harvesting is challenging for the government

Mumbai, Ta. 19 February 2020, Wednesday

India's wheat production is estimated to be at a record 1.5 million tonnes in the crop of 3-4 crores, while the country is facing alarming authorities for shortage of wheat as well as lack of storage space. On the other hand, the decline in the export of agricultural products from the country is also raising concerns.

When the demand for wheat production is high in the country, the government will have to take urgent measures to dispose of additional wheat or otherwise it will be challenging to tackle it, agricultural experts say.

Estimates released Tuesday show that wheat production in the crop year beginning July 1 has been estimated to be 1.8 lakh higher than the target. Production figures are likely to be more than 1.5 lakh tonnes more than the season of 2-3 years. Government agencies, including the Food Corporation of India, will start buying wheat from April 1, and even if the agencies buy 2 to 5 percent of the new wheat produced, the existing inventories are likely to add 1.5 million to 8 million tonnes. In the marketing year of 2-3 years, government agencies procured 8 million tonnes of wheat from farmers.

While FCI is still experiencing heavy financing, a large amount of money will be needed to make such a huge purchase and save it.

According to available data, on February 2, the central government had a total stock of 1.5 million tonnes of wheat and rice together. Of this, there were 1.2 million tonnes of wheat and 8 million tonnes of rice. Wheat stocks are seeing 5 percent more than needed.

Meanwhile, in the first three quarters of the current fiscal year, the country's agricultural exports are down 5 percent annually in the form of dollars. As a result of the slow global demand, exports were lower, government sources said.