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LATEST NEWS UPDATES | Indian farmers benefit from a sharp increase in exports; government cuts procurement for welfare programmes - PK Krishnakumar

Indian farmers benefit from a sharp increase in exports; government cuts procurement for welfare programmes - PK Krishnakumar

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published Published on May 6, 2022   modified Modified on May 10, 2022

-Moneycontrol.com

Global buyers have turned to India, the second-largest producer of wheat, after the onset of the Russia-Ukraine war. Russia and Ukraine together accounted for 30% of the global wheat supply.

Indian wheat farmers are earning more this year, thanks to a sharp increase in exports after the February 24 start of the Russian invasion of neighbouring Ukraine, which has disrupted global supply chains.

Prices have exceeded the government-fixed minimum support price (MSP) of Rs 2,015 per quintal of wheat. To make available more wheat for overseas shipments, the Centre has cut purchases from farmers for its welfare programmes.

The government has reduced its purchases to 19.5 million tonnes, from an original estimate of 44.4 million tonnes, Union food secretary Sudhanshu Pandey said.

Wheat prices have been hovering in the range of Rs 2,100 to 2,300 per quintal. Many farmers are holding the stock in anticipation of higher prices. If exports remain robust, prices may rise further.

The country requires around 25 million tonnes for its food welfare programmes; last year, the government purchased a record 43.34 million tonnes, which has provided it with a comfortable buffer stock after meeting its needs.

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Moneycontrol.com, 6 May, 2022, https://www.moneycontrol.com/news/business/economy/indian-farmers-benefit-from-a-sharp-increase-in-exports-government-cuts-procurement-for-welfare-programmes-8465151.html?fbclid=IwAR2md-HytprcK2F-qCC06hy-Lj0xX0LZwnTt-WXiAhrV


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