Record wheat, rice stocks as spells of rain shielded crops
India’s wheat crop escaped heat damage thanks to cooler nights and April rains. Harvest is strong, with FCI procurement underway in key states. Wheat stocks hit a three-year high at 11.8 million tonnes, well above buffer norms. Plentiful harvests are keeping food inflation in check and boosting farmer incomes, supporting broader economic demand across rural regions.
India’s wheat crop, a winter staple, escaped unharmed by hot weather mainly due to rain-inducing western disturbances and cooler nights during its maturing phase, even as day temperatures remained higher than normal, experts have said.
Output of the grain, currently being harvested, is expected to be robust and procurement by the Food Corporation of India, the state-backed grain-handling agency, has begun across food-bowl states, such as Punjab, Haryana, Madhya Pradesh and Uttar Pradesh, an official said.
Wheat stocks in the world’s second-largest producer surged to a three-year high this month, aided by strong harvests, official figures showed. The grain is sown in November and reaped in April-May.
Wheat reserves with the FCI stood at 11.8 million tonnes on April 1, higher than the safe buffer limits of 7.46 million tonnes for this time of the year. The opening stocks were also slightly more than 4 million tonnes than they were in the corresponding period last year.
Wheat purchases by the government had been average in the past two-three years mainly because of extreme weather, which had earlier prompted the government to ban export.
Good harvests help to keep a lid on inflation and boost income from cereals. Grain prices had soared to some of the highest levels earlier this year on supply concerns fuelled by predictions of early heat waves.
“Even if daytime temperatures rise above normal, relatively lower night temperatures provide a shield to wheat crops during its maturing stage. That’s the good news,” said Gyanendra Singh, a former director of the state-run Indian Institute of Wheat and Barley Research.
A couple of rainy spells in April caused by western disturbances, which are moisture-laden weather systems originating in the Mediterranean region, provided pauses to what was the onset of a harsh summer.
Rice reserves also stood at a record 63.09 million tonnes as on April 1, exceeding the buffer norms of 13.6 million tonnes.
Plentiful harvests are critical to meet the food-security needs of the world’s most populated country. They also boost farm income, which creates demand in other sectors of the economy.
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Source : Hindustan Times
