Traders not expecting significant premium for wheat this winter

CHANDIGARH: Sowing in over 90% of the area under wheat is over across the country but late sowing is continuing in Madhya Pradesh, Uttar Pradesh and Bihar.

Traders and industry bodies are not expecting a significant premium for the crop this winter as the large stock with the government’s food arm (FCI) keeps a check on the prices.

“We expect an increase in wheat area in Rajasthan, Uttar Pradesh, Bihar and Madhya Pradesh to touch over 29 million hectare from 28.5 million hectare in the previous year. Production too would increase from 80.70 million tonne in the 2009-10 drought year to over 82 million tonne,”said Dr SS Singh, Directorate of Wheat Research in Karnal. He added that the area under potato, sugarcane and paddy has to come under wheat in Uttar Pradesh and Bihar.

“The temperature will be two degrees less than that of the normal year, which will give a good yield. Also, with yellow rust and UG-99 resistant varieties like DBW-17 and PBW-550 replacing over 40% of PBW-343 wheat seed this year, we expect a good crop,” he said.

Rabi sowing starts from October and harvesting of the crop takes place during March-April. Wheat, being a major rabi crop in Punjab, was sown in an area of approximately 3.5 million hectare and, this year, the sowing in about 3.2 million hectare has already been completed during November. In Haryana, wheat cultivation is targetted to be in 2.47 million hectare area with a production estimate of 11.46 million tonne.

Uttar Pradesh’s joint director (crop and cereal) Dr Raza Singh said that 62% of 9.5 million hectare has been brought under wheat till November.

“Farmers are simultaneously sowing wheat as they harvest paddy in eastern part of the state and sugarcane in western Uttar Pradesh. Weather is conducive for sowing with maximum temperature at 25 degree celsius and minimum temperature 7.6 degree celsius,” he said.

With central buffer stocks of wheat stood at 25.56 million tonne as on November 1, traders and industry are not expecting an increase in the minimum support price (MSP). Wheat prices in the Khanna mandi in Punjab are ruling at Rs 1,170 to Rs 1,180 per quintal.

“A buffer stock and good sowing will ensure prices remain stable. Currently, traders are procuring as per their monthly requirement,” said Punjab flour miller association president Naresh Ghai. He added that under the Open Market Sales Scheme, the grain was being sold at Rs 1,240 excluding taxes.