NATIONAL NEWS ABOUT WHEAT- FEBRUARY, 2017 28.02.2017 Aap Urges Punjab Guv To Call All-Party Meeting On Wheat Procurement Taking serious note of the caretaker Government of SAD-BJP’s inaction towards the preparations for wheat procurement scheduled to begin on April 1, Aam Aadmi Party (AAP) on Monday demanded that Punjab Governor should immediately call ‘all parties meeting’ to ensure smooth procurement of wheat crop. State convener of Aam Aadmi Party (AAP) Gurpreet Singh Waraich, Head of the Manifesto Committee Kanwar Sandhu and president of the farmers’ wing of the party, Captain GS Kang said that present incumbent Government should share the detailed information on what steps it has taken so far for obtaining the Cash Credit Limit (CCL) from Reserve Bank of India (RBI) for wheat procurement. They said that results of Punjab assembly polls would be declared on March 11 after that it would take at least one week for the formation of new government in the state, leaving very few days for making arrangement for wheat procurement. “Adequate preparations for the wheat procurement is must for the agriculture based state of Punjab, so the incumbent government must reveal that what steps it took so far for the clearance of CCL to ensure that farmers should not suffer in the wheat procurement process”, they added. AAP leaders said that it is a known fact that during the last procurement of paddy, farmers had to suffer a lot due to late release of CCL by Centre and even Chief Minister had to personally visit Delhi many a times for getting CCL, as RBI had declined the same due to alleged embezzlement of food grain worth Rs 20,000 crore by the SAD-BJP Government. Now the time is ripe that Punjab Governor should intervene to ensure prompt and appropriate steps by the incumbent government to obtain CCL timely, so that farmers should not made to suffer due to mal-practices of SAD-BJP government, they said. AAP leaders assured that the party was committed for the smooth procurement of wheat and would ensure procurement of the crop within 24 hours of its arrival and payment to farmers within 72 hours of the procurement of their crop. It is highly imperative that Governor should call all parties meeting so that appropriate arrangements could be made well in advance for the smooth procurement of the wheat, they added. “We have already sought time from Governor on the issue to give a memorandum to him”, they revealed. Source:http://www.dailypioneer.com/state-editions/chandigarh/aap-urges-punjab-guv-to- call-all-party-meeting-on-wheat-procurement.html
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NATIONAL NEWS ABOUT WHEAT- FEBRUARY, 2017
28.02.2017
Aap Urges Punjab Guv To Call All-Party Meeting On Wheat Procurement
Taking serious note of the caretaker Government of SAD-BJP’s inaction towards the preparations
for wheat procurement scheduled to begin on April 1, Aam Aadmi Party (AAP) on Monday
demanded that Punjab Governor should immediately call ‘all parties meeting’ to ensure smooth
procurement of wheat crop.
State convener of Aam Aadmi Party (AAP) Gurpreet Singh Waraich, Head of the Manifesto
Committee Kanwar Sandhu and president of the farmers’ wing of the party, Captain GS Kang said
that present incumbent Government should share the detailed information on what steps it has
taken so far for obtaining the Cash Credit Limit (CCL) from Reserve Bank of India (RBI) for wheat
procurement.
They said that results of Punjab assembly polls would be declared on March 11 after that it would
take at least one week for the formation of new government in the state, leaving very few days for
making arrangement for wheat procurement.
“Adequate preparations for the wheat procurement is must for the agriculture based state of
Punjab, so the incumbent government must reveal that what steps it took so far for the clearance
of CCL to ensure that farmers should not suffer in the wheat procurement process”, they added.
AAP leaders said that it is a known fact that during the last procurement of paddy, farmers had to
suffer a lot due to late release of CCL by Centre and even Chief Minister had to personally visit
Delhi many a times for getting CCL, as RBI had declined the same due to alleged embezzlement
of food grain worth Rs 20,000 crore by the SAD-BJP Government.
Now the time is ripe that Punjab Governor should intervene to ensure prompt and appropriate
steps by the incumbent government to obtain CCL timely, so that farmers should not made to
suffer due to mal-practices of SAD-BJP government, they said.
AAP leaders assured that the party was committed for the smooth procurement of wheat and
would ensure procurement of the crop within 24 hours of its arrival and payment to farmers
within 72 hours of the procurement of their crop.
It is highly imperative that Governor should call all parties meeting so that appropriate
arrangements could be made well in advance for the smooth procurement of the wheat, they
added.
“We have already sought time from Governor on the issue to give a memorandum to him”, they
Wheat import duty hike: Minister Ram Vilas Paswan flip-flops on policy
Given the likely glut in wheat due to higher production as well as imports, and the likelihood of prices falling due to this, especially in states where there is no MSP-linked guaranteed procurement by government agencies like FCI, it is not surprising food minister Ram Vilas Paswan is talking of the possibility of the government hiking import duties from zero right now. Indeed, influential farm leaders have already panned the government for allowing imports to take place while farmers could be facing lower prices.
Under the circumstances, while raising import duties on wheat may not be a bad idea, the government has to examine its role in the sorry state of affairs. Last year, while traders were projecting an output of around 82-83 million tonnes due to the drought, the government kept insisting the output would be 10 million tonnes higher. As a result, while wheat prices kept hardening, the government was slow to cut import duties—instead, it cut stocking limits for traders since it believed hoarding was behind the price rising. Finally, when prices didn’t let up, and India’s buffer stocks fell to multi-year lows, import duties were cut to 10% in September 2016 and to zero in December—it is after this that 5.5 million tonnes were imported.
Hiking import duties, as Paswan is suggesting, could help stabilise wheat prices and is important since, if prices fall beyond a point, this could affect sowing of wheat in the next season—in other words, long-term agriculture growth would get affected. In the case of pulses, a similar fall in prices is jeopardising the possibility of long-term production and those who imported at high prices are already looking at the possibility of large losses. But while raising duty levels will solve the immediate problem, the government needs to examine why it is getting its production estimates so wrong—a similar dispute over likely sugarcane production is keeping import duties at an unconscionably high 40%.
Rather than abruptly changing import duties, and often too late to be able to contain domestic prices, a better solution would be to allow futures trading to smooth price fluctuations. Since a well-functioning futures market will provide accurate price signals, imports can be made well in advance—of course, this will mean the stop-go export policies that are prevalent today will have to be stopped, as will the sudden and arbitrary changes in import duty.
Government may review the current duty free wheat import regime in view of expectations of a record harvest this year
New Delhi: The government may review the current duty free wheat import regime, food minister Ram Vilas Paswan said on Tuesday, in view of expectations of a record harvest this year and to ensure that imports do not dampen local prices.
The government recently removed the import duty on wheat to increase its availability in domestic market, Paswan said.
“(We) will take all necessary steps to ensure payment of minimum support price (MSP) to farmers and may review the import duty on wheat if required,” the food minister said in a statement.
The Centre abolished the 10% import duty on wheat in December last year after retail prices rose due to lower than estimated production in 2016. In September, it slashed import duty to 10% from 25%.
Last year, the agriculture ministry’s wheat estimates came under scrutiny after retail prices soared due to lower availability. The ministry had estimated a crop size of 94 million tonnes in May last year (third advance estimates for 2015-16), significantly higher than the 85-88 million tonnes estimated by traders.
In its latest estimates released on 15 February, the agriculture ministry revised it down to 92.3 million tonnes, and projected the 2016-17 production at a record 96.6 million tonnes. Harvest of the 2017 crop begins in April.
According to the food ministry, following the production shortfall last year, wheat imports to India surged to a high of 5.5 million tonnes (2016-17).
However, the ministry expects a turnaround this year. It has set a target to procure a record 33 million tonnes from farmers beginning April, considerably higher than the target of 28 million tonnes the year before, which fell short by nearly 5 million tonnes.
“When there is price rise the benefit is taken by the traders and consumers are exploited. However, when fresh crop hits the market prices fall and the farmers have to take the loss,” the food ministry said in its statement. “Extensive preparations have been made for procurement operations,” it added.
Centre may review wheat import duty if required: Paswan
NEW DELHI, FEBRUARY 21: Riding on expectations of a bumper wheat crop this year, the Centre said it may review import duty if it feels that farmers are not getting the right price.
“Fresh wheat crop is expected to come by mid-March, … and when fresh crop hits the market, prices fall, and farmers have to take the loss,” said Food Minister Ram Vilas Paswan here on Tuesday, adding that “government will take all necessary steps to ensure payment of MSP (minimum support price) to farmers and may review the import duty on wheat if required.”
He said the government’s experience was that traders take advantage of the high rates while farmers are forced to sell their produce at cheaper prices.
The Centre recently scrapped 10 per cent import duty on wheat to increase its availability in the domestic market. In around two months, 40 lakh tonnes wheat has been imported and more than 55 lakh tonne imports have taken place this year, the Ministry said in a release.
As per data released by the Agriculture Ministry, wheat production will be around 965 lakh tonnes. Sowing of wheat was up by 7 per cent, pulses increased by 11 per cent and sowing of oilseeds was higher by 6 per cent compared with last year.
“Going by the sowing area and favourable weather conditions, the country will have good yield of wheat,” the Minister said, adding that the Food Department held a meeting with wheat producing States on February 15, and had set the procurement target at 330 lakh tonne for the ensuing Rabi Marketing Season 2017-18.
India top buyer of Ukrainian wheat Source:http://economictimes.indiatimes.com/news/economy/foreign-trade/india-top-
buyer-of-ukrainian-wheat/articleshow/57169084.cms
Wheat procurement target set at 330 lakh tonnes for 2017-18
The Centre has decided to procure 330 lakh tonnes (lt) of wheat during the rabi marketing season 2017-18, higher than 229.61 lt during the last season.
A decision to this effect was taken on Wednesday in the conference of State Food Secretaries, chaired by Preeti Sudan, Secretary, Department of Food & Public Distribution.
The sowing of rabi crops this year is reported to be 6 per cent higher than last year. As per Agriculture Ministry data for the week ended January 27, wheat had been sown on 315.55 lakh hectares (lh) compared with the normal level of 301.49 lh for the corresponding week.
As per a Food Ministry’s release, the Centre will procure an estimated 115 lakh tonnes (lt) of wheat from Punjab, 85 lt from Madhya Pradesh, 75 lt from Haryana, 30 lt from Uttar Pradesh, 17.5 lt from Rajasthan, 5 lt from Bihar, 1.5 lt from Uttarakhand, and 0.50 lt each from Gujarat and other States.
Rice procurement The Centre also decided to procure an estimated 50 lt paddy grown in rabi crop of the kharif marketing season (KMS) 2016-17.
Of the total 50 lt, 15 lt of paddy will be procured from Telangana, 13 lt from Andhra Pradesh, 8 lt from West Bengal, 7 lt from Odisha, 5 lt from Tamil Nadu, 1 lt from Kerala, 0.75 lt from Maharashtra and 0.25 lt from Assam.
“This estimate is over and above the estimate of 330 lt set for KMS 2016-17, for which the procurement operations are going on and the paddy procurement in KMS 2016-17 in terms of rice has already reached to the level of 292.31 lt, as reported on February 15, 2017,” the release said, adding that this was nearly 28 lt higher than the procurement of 264.53 lt by the corresponding date last year.
Scientists at the Indian Institute of Wheat and Barley Research (IIWBR) here have developed a new wheat variety with high content of zinc.
Soon, people would be able to buy zinc-rich wheat which would cost as much as normal varieties at retail outlets, sources said, adding that the new variety was resistant to yellow, black and brown rusts.
“Keeping in view the increasing graph of malnutrition, scientists have developed WB-02 variety which has high zinc in compare to other wheat varieties, said Dr GP Singh, Director, IIWBR. Now, people would get nutritious option in wheat, he said.
He said that during a meeting in New Delhi last week, the CVRC had given its consent to release the variety.
As per the scientists, around 70 per cent of the Indian population consumes less than 50 per cent of the recommended dietary allowances (RDA) of micronutrient, while around50 per cent children under the age of 3 years are underweight, while 20 per cent of them are severely malnourished. This deficiency will severely affect the productivity of the population in future. A major graph of women, particularly in the rural areas, has the nutritional deficiency.
“Normally, wheat contains 30-35 parts per million (PPM) of zinc, whereas this variety has 42 PPM zinc,” said Ravish Chatrath, principal scientist, IIWBR, who developed this variety.
“After approval from the CVRC, the institute has raised the production of seed of this variety and it may be available for sowing in the coming season,” he added.
“The average yield of WB-02 is almost equal to other varieties and its average production is around 52 quintal per acre,” he said.
“The variety is meant for the north-west states of the country and can be sown in first week of
Low temperature accompanied by frost during night has brought cheers to farmers, as they are anticipating high yield of wheat this season.
Wheat is a major rabi crop of this border district. Fazilka is one of the largest wheat-producing belts of the area.
Sources in Agriculture Department said wheat had been sown on 2.7 lakh hectares in the district.
Agronomist Satish Dhingra said the night temperature, which fell to 6°C during the month of February, and frost proved beneficial to the standing wheat crop sown in November.
“Farmers are expecting higher yield from the lush wheat crop this time,” said Keemat Ram of Farmawala village. Agriculture Development Officer SK Dhanju said the department was expecting yield of over 20 quintals an acre.
Last year, the average yield was recorded at about 18 quintals per acre in Fazilka district.
Meteorological experts are hoping that the favourable atmosphere would prolong till the harvesting of the crop during the month of April.
“The use of insecticide is minimal this season and the crop is standing disease-free,” said Lal
Chand of Kotha village, who has sown wheat on 8 acres.
FEBRUARY 8,2017 AHMEDABAD/BENGALURU: Market arrivals of the wheat crop have begun in Madhya Pradesh and Gujarat, leading to a softening trend in prices of the cereal, which had spiked in recent months on supply concerns. Also, the increase in grain imports from countries such as Australia and Ukraine, which are expected to touch 5 million tonnes this year, is seen weighing on domestic prices.
In Indore, the benchmark market for the cereal, daily arrivals are hovering between 40 and 50 quintals, whereas in the mandis of Gondal and Rajkot in neighbouring Gujarat, arrivals are ranging between 40 and 80 quintals.
Wheat acreage has risen this year to 317.81 lakh hectares against last year's 297.25 lakh ha and conducive weather is seen boosting the prospects of a good harvest.
Trade sources in Indore said prices of the new wheat are ranging between ₹1,600 and ₹2,000 a quintal in various markets, similar to last year, depending on the quality and the moisture content. Arrivals are expected to pick up after Holi in Madhya Pradesh, where farmers have brought additional acreage of over 1 million hectares under wheat cultivation.
Similarly, in Gujarat, prices are hovering between ₹1,850-2,050. In Delhi, wheat prices are trading lower at ₹2,000 compared to the ₹2,200 levels in mid-January, reflecting a softening trend on new crop arrivals and increased imports. The February contract on the NCDEX was quoting lower at ₹1,767.
Bumper crop Given the adequate availability of imported wheat and expectations of a bumper domestic crop, demand and buying interest in new wheat from millers and stockists is almost negligible. “Demand is expected to pick up only from mid-March,” said Heera Lal, a wholesale wheat trader in Indore. Considering record imports and a bigger crop, farmers are staring at lower prices for wheat this year. “We fear the prices will drop due to the sentiment of oversupply after the increase in imports. Futures also indicate a bearish trend — when the arrivals pick up later this month, there will be downward pressure on prices. We have sown wheat but the harvest will take place later this month,” said Tarsibhai Ranchhodbhai Patel from Padadhari of Rajkot district.
Higher imports Sharing similar views, Vitthal Dudhatara, co-general secretary, Bhartiya Kisan Sangh (BKS) in Gujarat, said: “Production is likely to be higher but the harvest will begin after 15-20 days. Only then can we expect some clarity on prices. We believe prices will be lower due to huge imports likely to take place. At the association level we have strongly opposed the Centre’s decision to cut down the import duty and opening doors for a flush of imports.” Millers estimate that India has so far, imported anywhere between 3 and 4 million tonnes, while over another million tonnes has been contracted by millers. “About 22 ships bringing in some 54,000 tonnes each are headed to Tuticorin from Australia,” trade sources said.
India's wheat imports rise above 5 million tonne, biggest in decade India bought 6.7 million tonnes of wheat in 2006/07, according to the US Department of
Agriculture.
SINGAPORE: India has bought more than five million tonnes of wheat since mid-2016, already
its biggest annual purchase in a decade, after it began an import campaign to meet a supply
shortfall left by two years of lower production.
The country is slowing down imports ahead of the harvest in April and purchases in the months
ahead will depend on production this year, two traders told Reuters on Wednesday.
"There will be more deals signed in the coming months," said one Singapore-based trader. "It will
not be more than 200,000 to 300,000 tonnes as the domestic harvest is expected to replenish
supplies."
Thomson Reuters data showed 5.1 million tonnes of wheat has been delivered or loaded for arrival
into India since July 1, while traders estimated the country has bought about 5.2 million tonnes.
More than one million tonnes of wheat was delivered to India in January and February arrivals
have already hit close to 400,000 tonnes.
India bought 6.7 million tonnes of wheat in 2006/07, according to the US Department of
Agriculture.
The country began importing wheat around the middle of last year after two years of dry weather
and unseasonal rains hit production in the world's second largest consumer of the grain.
The country has bought wheat mainly from Ukraine and Australia. Indian flour mills paid about
$210-$212 a tonne, including cost and freight (C&F), for Ukrainian wheat.
For Australian Standard Wheat (ASW), millers paid $215-$220 a tonne and Australian Premium
Wheat (APW) was delivered to the country at about $235-$240 a tonne, traders said.
Indian wheat futures fell for a second day on Tuesday, as data released on Friday showed higher
planting compared with last year.
Winter wheat planting in India this year was up about 7 percent at 31.78 million hectares as of
Favourable weather gives wheat sowing a boost Favourable weather seems to have helped in the sowing of wheat — the main rabi crop — in the key growing regions of North India, where farmers have brought in higher acreage under the cereal crop this year. Wheat acreage stood at 317.81 lakh hectares (lh) as on February 3, compared with 297.lh in the corresponding period last year and 303.18 lh of average sowing over the previous five years.
Sowing of pulses, too, increased to 159.72 lh in the current rabi season till February 3, compared with the previous five years’ average (normal of the corresponding week) of 147.7 lh.
Beneficial showers “The January rains have been a big positive for wheat in Punjab and Haryana, where the crop is in boot and heading stages with spikes seen emerging in various locations. Though there have been reports of hailstorms in some areas, the overall scenario looks good,” said an official at the Agriculture Ministry.No major incidence of pest or disease attack has been reported in the key producing regions.
Weather forecast The India Meteorological Department says that almost all regions of North-West India have received excess rain in the last week of January.
The Met has also forecast rains over the next few days over the region.
The government has set a wheat production target of 96.5 million tonnes this year.
Higher coverage has been reported from Madhya Pradesh, Uttar Pradesh, Maharashtra and Rajasthan. Lower coverage has been reported from Gujarat, Karnataka and Assam.
Rice, cereals lose There was, however, a decline in the sowing of rice, coarse cereals and oilseeds compared with the average acreage in the last five years.
Overall, acreage under rabi sowing, which started at the end of October and has now almost tapered off, was at 645.12 lh till February 3, compared with the normal for the corresponding week, of 623.93 lh.
Rice sowing declined to 25.64 lh (29.25 lh).
States such as Telangana, Assam, Chhattisgarh and Tripura have reported higher coverage, while lower coverage has been reported from Tamil Nadu, Andhra Pradesh and Karnataka.
Sowing of coarse cereals declined to 57.61 lh (58.92 lh).
Higher area coverage was reported from States, such as Madhya Pradesh, Bihar, Gujarat and West Bengal.
Lower sowing was reported from some States, including Karnataka, Maharashtra, Andhra Pradesh and Telangana.There was a marginal decline in the sowing of oilseeds, which fell to 84.34 lh, compared with normal for the corresponding week, of 84.89 lh.
There was higher sowing in Jharkhand, Uttar Pradesh and Rajasthan.Lower sowing was reported from Karnataka, Andhra Pradesh, Tamil Nadu, Maharashtra and Odisha.
While higher production of foodgrains may help better the agriculture growth rate of 4.1% estimated last month, a record crop will also help keep food inflation in check
New Delhi: Farmers in India have planted the highest ever area under wheat and pulses in the ongoing winter crop season, raising hopes of a bumper crop in 2016-17, surpassing past records. While higher production of foodgrains may help better the agriculture growth rate of 4.1% estimated last month by the statistics department, a record crop will also help keep food inflation in check.
Further, a record area planted under winter crops shows that the cash crunch following demonetisation of high value currency in November did not impact sowing, though poor crop management and adverse weather in the coming months may lead to lower yields.
According to the latest report on the progress of Rabi (winter) sowing released by the agriculture ministry on Friday, India’s wheat area has climbed to 31.8 million hectares in 2016-17, the highest ever, surpassing the 31.5 million hectares planted in 2013-14. This season’s planting is over 2 million hectares more than last year (2015-16) when a widespread drought led to lower plantings.
Similarly, 16 million hectares have been planted with pulses, close to 2 million hectares more than the normal or five-year average area. Though the area under rice, coarse grains and oilseeds is lower than five-year averages, the total area under winter crops in 2016-17 stands at 64.5 million hectares, marginally higher than the previous record area of 64.4 million hectares achieved in 2013-14.
Indian farmers harvested a record 95.8 million tonnes of wheat in 2014, followed by consecutive years of poor harvest due to adverse weather conditions—86.5 million tonnes in 2015 and 93.5 million tonnes in 2016, according to government estimates. For 2017, the government has set a target of 96.5 million tonnes of wheat production.
Overall, the government has targeted foodgrain production at 270 million tonnes in 2016-17, following a normal monsoon last year, hoping to better the previous record of 265 million tonnes output achieved in 2013-14.
According to the first advance estimates released by the agriculture ministry in September, production of Kharif foodgrains (2016-17) is expected to rise by 9% year-on-year. A bumper winter harvest means that the overall production target will be within reach.