Agricultural markets were buzzing with the receipts of rabi crops

Commodity Current - Jayavadan Gandhi

Nowadays the income flow of crops including grains, spices, telebia in the agricultural markets is increasing day by day and the market prices of the products are being reined in. During the last year, the wheat market was mostly higher than the support price, the farmers planted more wheat than the target in rabi season in anticipation of higher prices, but at the time of new wheat income, the government, which is considered the king, sold a total of 50 lakh tonnes of wheat in the open market to control the wheat prices. As the new wheat market slips below the support prices, farmers are deprived of the opportunity to get higher prices, and there is a lot of resentment among the farmers. Throughout the year, the government did not think of disposing of the large amount of reserve wheat and by selling the wheat in the open market to generate new revenue, it has become widely discussed that the government's intention has indirectly made way for itself i.e. the government as well as the corporate sector to get wheat at a cheap price. It is said that the agenda of doubling the income of the farmers has been pushed by this kind of move of the government. On the one hand, the fear of reduced harvest due to premature heat wave and on the other hand the government's inflationary stance has affected the expectations of the farmers to get the expected price. So far sale of around 13 lakh tonnes of wheat has been completed through e-auction. Due to the sale of government wheat quantity in the open market, prices of wheat and flour have also decreased. Wheat prices have collapsed and are in the range of 2200 to 2300.

Meanwhile, following the fear of El Nino, the government has also focused on the buffer stock of wheat in the future. At present, despite the ban imposed on rice export, there has been an increase of about three and a half percent in the export of rice. Most of the rice is exported to Asian countries, Africa and China. An average of 222.6 lakh tonnes of rice has been exported in the year 2022. Out of which half of the quantity has gone to China, in order to keep rice supply and inflation under control at the local level, the export ban is still in place and the government is determined to keep the export duty at 20 percent as usual.

On the other hand, among the spice crops, currently the revenues of coriander, the agricultural markets like Gondal, Rajkot, Unjha, which are significant, are declining. Cultivation of coriander is mostly in Saurashtra region. Last week, Saurashtra's agricultural markets saw a revenue of around two and a half lakh bags. The market is in the range of 1050 to 1150 for airy coriander and 1180 to 1400 for dry goods. However, the uptake of exporters is being seen in good proportion. Compared to Gujarat, other coriander producing Madhya Pradesh and Rajasthan, the revenue of coriander is coming down by almost 50 percent as expected. Parallel to coriander, the revenue of cumin is also continuously increasing in Unjha market. However, with cumin prices heading high, consumption is being affected. The market is moving up and down in the range of 300 to 320 per kg due to speculative moves in cumin futures. However, the day-to-day volatility of cumin futures is high, making trades risky.