More wheat shares offloaded however worries keep

Express News Service

NEW DELHI: As the temperatures have risen abnormally in wheat-producing areas, so have the federal government’s anxieties over wheat costs and manufacturing. The authorities seems to be firefighting in its try to scale back the wheat and atta costs and scale back the impression of extreme warmth on the present rabi crop by constituting a committee to advise farmers.

The authorities on Thursday claimed that the wholesale wheat costs have come down after offloading vital quantity of wheat inventory within the open market  scheme. Meanwhile, the Central authorities has additionally determined to dump a further 20 lakh tonnes (LT) of wheat to additional scale back the costs.

Ashok Okay Okay Meena, the chairman and managing director Food Corporation of India (FCI), stated after offloading greater than 18 LT of wheat within the open market in three e-auctions since February, the wholesale value of wheat is lowered by round Rs 300.

However, the lowered wholesale value will take a while to supply solace to retail customers. According to the Department of Consumer Affairs, the typical retail costs in January 2023 of wheat and atta had been at a 10-year excessive. Wheat costs had been over Rs 3,300 per quintal whereas atta costs had been over Rs 3,700 per quintal. The Ministry of Statistics and Programme Implementation information reveals that since September 2021, the retail value index has proven over 20 per cent rise in wheat value.

Concerned over rising costs, the federal government on January 25 agreed to enhance the wheat provide within the open market by offloading by means of the open market sale scheme (OMSS) to chill down the costs. Initially, the federal government determined to dump 25 LT wheat by means of OMSS. On February 21, it added 20 LT wheat to the market. Besides, the federal government supplied 5 LT at a cheaper price to state governments, and its companies like NAFED, Kendriya Bhandaran, and others, promote wheat at decrease costs by means of totally different schemes. In all, the entire wheat inventory to be offloaded underneath the scheme is 50 LT.

The first e-auction bought 9.13 LT with a median value of Rs 2,474/quintal, adopted by the second e-auction bought 3.85 LT with a median value of Rs 2,338/quintal. In the third e-auction, one other 5.07 LT wheat was bought at a median value of Rs 2,172/quintal the lowered public sale value have to be handed on to retail customers. “Millers and traders assured us that reduced wheat price benefits will be passed on to consumers,” stated Meena.

The authorities’s agricultural commodity value index additionally reveals a minimal lower within the modal value. “With this, model prices in different mandis of the country are hovering around Rs 2,200 to Rs 2,300,” stated Meena. Meanwhile, the federal government has rejected merchants’ and specialists’ hypothesis of the opportunity of hoardings that consumers won’t launch cheaper wheat as the present climatic situation could scale back wheat manufacturing prefer it did final 12 months.

ALSO READ | Maximum temperature in February could impression wheat manufacturing within the nation

The present weather conditions inflicting extra warmth in the course of the flowering and maturing interval result in a loss in yield, presumably pushing the worth in upcoming months. Only after that, the merchants will launch wheat available in the market. “As of now, our assessment says the production will not come down. Moreover, we are 
promoting most small traders to participate in e-auction,” stated Meena. He shared figures that present round 87 per cent of farmers are small merchants who purchased lower than 500 metric tonnes and have a lesser likelihood to hoard.

NEW DELHI: As the temperatures have risen abnormally in wheat-producing areas, so have the federal government’s anxieties over wheat costs and manufacturing. The authorities seems to be firefighting in its try to scale back the wheat and atta costs and scale back the impression of extreme warmth on the present rabi crop by constituting a committee to advise farmers.

The authorities on Thursday claimed that the wholesale wheat costs have come down after offloading vital quantity of wheat inventory within the open market  scheme. Meanwhile, the Central authorities has additionally determined to dump a further 20 lakh tonnes (LT) of wheat to additional scale back the costs.

Ashok Okay Okay Meena, the chairman and managing director Food Corporation of India (FCI), stated after offloading greater than 18 LT of wheat within the open market in three e-auctions since February, the wholesale value of wheat is lowered by round Rs 300.

However, the lowered wholesale value will take a while to supply solace to retail customers. According to the Department of Consumer Affairs, the typical retail costs in January 2023 of wheat and atta had been at a 10-year excessive. Wheat costs had been over Rs 3,300 per quintal whereas atta costs had been over Rs 3,700 per quintal. The Ministry of Statistics and Programme Implementation information reveals that since September 2021, the retail value index has proven over 20 per cent rise in wheat value.

Concerned over rising costs, the federal government on January 25 agreed to enhance the wheat provide within the open market by offloading by means of the open market sale scheme (OMSS) to chill down the costs. Initially, the federal government determined to dump 25 LT wheat by means of OMSS. On February 21, it added 20 LT wheat to the market. Besides, the federal government supplied 5 LT at a cheaper price to state governments, and its companies like NAFED, Kendriya Bhandaran, and others, promote wheat at decrease costs by means of totally different schemes. In all, the entire wheat inventory to be offloaded underneath the scheme is 50 LT.

The first e-auction bought 9.13 LT with a median value of Rs 2,474/quintal, adopted by the second e-auction bought 3.85 LT with a median value of Rs 2,338/quintal. In the third e-auction, one other 5.07 LT wheat was bought at a median value of Rs 2,172/quintal the lowered public sale value have to be handed on to retail customers. “Millers and traders assured us that reduced wheat price benefits will be passed on to consumers,” stated Meena.

The authorities’s agricultural commodity value index additionally reveals a minimal lower within the modal value. “With this, model prices in different mandis of the country are hovering around Rs 2,200 to Rs 2,300,” stated Meena. Meanwhile, the federal government has rejected merchants’ and specialists’ hypothesis of the opportunity of hoardings that consumers won’t launch cheaper wheat as the present climatic situation could scale back wheat manufacturing prefer it did final 12 months.

ALSO READ | Maximum temperature in February could impression wheat manufacturing within the nation

The present weather conditions inflicting extra warmth in the course of the flowering and maturing interval result in a loss in yield, presumably pushing the worth in upcoming months. Only after that, the merchants will launch wheat available in the market. “As of now, our evaluation says the manufacturing won’t come down. Moreover, we’re 
selling most small merchants to take part in e-auction,” stated Meena. He shared figures that present round 87 per cent of farmers are small merchants who purchased lower than 500 metric tonnes and have a lesser likelihood to hoard.