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LATEST NEWS UPDATES | On the wheat trail: State granaries under strain, private traders make hay -Sandip Das

On the wheat trail: State granaries under strain, private traders make hay -Sandip Das

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published Published on Apr 25, 2022   modified Modified on Apr 29, 2022

-Financial Express

Crop loss, lower procurement to deplete FCI stocks; local supplies may suffice for PDS, free-ration schemes

At Punjab’s Rajpura mandi, private traders are busy buying the wheat crop brought in by farmers at marginally above the minimum support price (MSP). Traders have been super-active in the mandi, one of the largest centres of wheat trade in the country, and their daily purchases often exceed the official procurement by the state-run Food Corporation of India (FCI).

That is quite unusual for the state, where government procurement has conventionally been the most robust in the country and private traders used to have only a marginal role.

At the state’s Khanna mandi, touted as Asia’s biggest grain market and also at Taraori in Haryana’s Karnal district, this reporter saw similar exuberance being exhibited by private traders last week to beef up their wheat stocks.

What explains the enthusiasm of private traders is a looming supply crunch of the grain, which they feel will be in evidence by July-August, given the havoc an early onset of summer has played on the ripening crops in the main wheat-growing regions, including Punjab, Haryana and Uttar Pradesh. The traders anticipate that FCI, mindful of a tight stock position, will likely refrain from its customary open market sales this year.

A supply constraint could not have come at a worse time for India, as the export market for the grain is already booming and may remain so in the coming few months, owing to the Russia-Ukraine war which has altered the dynamics of global wheat trade. And Indian wheat is highly competitive globally.

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Financial Express, 25 April, 2022, https://www.financialexpress.com/economy/state-granaries-under-strain-private-traders-make-hay/2502064/?fbclid=IwAR1_aJ0R2GaYzvUw385Kywf-xcJ1c--I631peUEh4aMuHaJGoTaB3VJMz6c


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