India's Wheat Production Set To Achieve New Record At 114 Million Tonnes In 2023-24

1. India's Wheat Production Set To Achieve New Record At 114 Million Tonnes In 2023-24 FCI procured 26.2 million tonnes of wheat, exceeding the annual buffer requirement of 18.4 million tonnes. This year’s wheat crop will be ready for harvest from April onwards. According to a top food ministry official on Wednesday, wheat production in the current crop year (2023–24) is predicted to reach a new record of 114 million tonnes, with higher coverage and assuming normal weather. Tradologie.com is a user friendly SaaS based digital trade hub and your streamlined solution for B2B rice procurement and sales. Connect with global bulk wheat buyers or bulk wheat sellers, bypass middlemen for higher profits, and secure the best bulk prices effortlessly. Simplify your wheat sales or procurement with Tradologie.com. Wheat Production In India The final leg of the main winter crop, wheat, is currently being sown and will run through next week. Official data shows that 320.54 lakh hectares of wheat were planted up until last week. In the 2022– 2023 crop year (July–June), wheat production reached a record 110.55 million tonnes, up from 107.7 million tonnes the year before. Food Corporation of India (FCI) Chairman and Managing Director Ashok K Meena told reporters, “We expect that combined area under wheat cultivation would increase this year and God willing if the climate is alright, production will be 114 MMT which is what the agriculture ministry indicated informally.”

2. The area planted to wheat is likewise up from the previous year. He stated that although there was a 1% shortfall in certain states, it will also be made up in the first week of January. “If production continues at that level, we have every confidence that we will be able to procure excess inventory in addition to the additional stocks required for the Open Market Sale Scheme (OMSS) for the following year,” he said. The FCI is the central nodal agency that purchases wheat and rice to guarantee MSP to the farmers and provides the grains to the 81 crore impoverished people at no cost through ration shops. Additionally, it makes use of OMSS surplus grain to increase domestic availability and monitor prices. Using OMSS To Control Wheat And Rice Inflation According to FCI, since June 2023, 5.9 million tonnes of wheat have been sold in the open market via weekly e-auction under the OMSS, helping to stabilize retail prices. The FCI Chairman stated that there has not been much of an increase in retail wheat prices year over year. He also mentioned that the wheat OMSS will only last until 15th of March. Under the OMSS, rice has received a lukewarm reception; thus far, the FCI has only been able to sell 1.45 lakh tonnes at Rs 29 per kg through weekly auctions. The FCI is intervening in the market to stabilize the prices of two important commodities by using its 15.6 million tonne excess foodgrain stock. He added that, “The OMSS intervening has helped to stabilise prices of the two commodities. With rice and wheat being important part of the CPI basket, one hopes that food inflation would get controlled to the max possible.” Launch of ‘Bharat rice’ The FCI head stated that a plan to sell the grain under the "Bharat" brand is being considered, as there are few interested parties purchasing FCI rice under the OMSS. The Food Ministry has been notified by the FCI that it has sufficient stock of rice for the same. According to sources, there will not be much FCI rice off take for this new scheme. Rice Procurement This Year FCI has purchased 31.1MMT of rice so far in the current 2023-24 marketing season (September- October), while state governments have set a target of 52.1 MMT. Paddy procurement has been 46.4 million tonnes so far this year, down from 53.4 million tonnes the previous year. In the marketing season of 2022–2023, the FCI procured 56.9 million tonnes of rice. As of January 1, the FCI reports that the total food grain stock was 34.4 million tonnes. The current milling output of 32.8 million tonnes of rice will raise the total stock in the central pool to 67.2 million tonnes. Concerning the funds needed for procurement, the FCI chief stated, “Until now, the flow of funds under food subsidy has been extremely comfortable. Right now, FCI has no short-term loans.”

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