Russ-Ukraine war raises wheat prices in county but not in Gujarat

Russ-Ukraine war raises wheat prices in county but not in Gujarat

Wheat Price in Ratlam Wheat Rs. 3000 per quintal up to 2200 in Gujarat

Dilip Patel, 10 March 2022
The effect of the Russo-Ukraine war is beginning to be seen in the world as well as in Gujarat. The prices of petroleum, edible oil and food articles have risen. Due to Russia and Ukraine, the prices of commodities are constantly fluctuating around the world. The rising demand for wheat in the world market has also led to a rise in prices.

Major exports are taking place from Gujarat’s Kandla port. Exporters are buying wheat at the open price of Rs 2,500. The enthusiasm among exporters has increased so much that they have offered to pay Rs 2,500 any day in April.

Despite exports from Gujarat’s ports, traders are buying goods from farmers of Gujarat at less than minimum prices. Gujarat’s Minister of State for Agriculture Parshottam Rupala is at the center, yet again.

As soon as the government fixes the minimum price or support price, the prices fall in the open market for farmers. In Gujarat the government buys hardly 5% of the total wheat production. But traders do not pay more than the minimum price. The farmers of Gujarat should have benefited more because of the war. But Gujarat is getting less than 2200 of 100 kg wheat against the price of Rs 3 thousand in the country.

Presently, the total area under wheat in Gujarat is expected to be 12.17 lakh hectare in 2022. But it has happened in 12.54 lakh hectares. 13.66 lakh hectare in 2021. The Agriculture Department is expected to produce 39.14 lakh tonnes. It is estimated that 3,220 kg of wheat will be harvested per hectare. Wheat will hit the market from March 15.

A new crop of wheat is expected to arrive in the country in the coming days.

price in country
The skyrocketing wheat prices have increased competition in exports. In India, wheat (train-truck) from states like Madhya Pradesh, Gujarat, Rajasthan and Uttar Pradesh is loaded into godowns near Kandla port. The price in the country is around Rs 2,500, which was Rs 2,100 per quintal 15 days ago.

Price in Gujarat
In 17 agricultural markets of Saurashtra, the minimum price of troop and Lok-1 variety of wheat is Rs 350 per 20 kg and the maximum price is Rs 550. This can be gauged from the investigation of Lok-1 and detachment wheat 17 mandis of 62 agricultural markets of Gujarat. The high price of 100 kg is getting 2200. The lowest price is Rs 1750 per 100 kg. Thus the price of Nacha is 225 less than the support price. But A grade wheat has a good price.

1 March Gujarat Price
On March 1, 2020, the price of 100 agricultural mandis in Gujarat was Rs 400 to 500 per 20 kg. Which is 350 to 550 today. Prices have risen since the war. Sales were 31 thousand bags.

support price
For the year 2022-23 one quintal 100 kg wheat government support price of Rs. is 2015. 20 per mound to the farmers. 403 will be given.

Bought in 2020-21
Bought 0.77 lakh metric tonnes of wheat from Gujarat.

2021-22. bought in
The government bought 1.70 lakh tonnes of wheat worth Rs 336.54 crore from 34959 thousand farmers on support price in 2021. 96,267 purchased from a farmer.

Bought in 2022-23
The purchase registration will start from March 2 and till March 31, 2022, farmers will be able to register for selling wheat. At the time of registration, farmers will have to provide 7/12 and 8-A sample, passbook photo copy, Aadhar card, planting sample. Farmers are registered in their village.
Supplies will also be able to register and sell in 235 government godowns of the corporation. The target is to procure from 50 thousand farmers. The purchase will last for 74 days. Helpline no. There are 911121316 and 811121313.

wheat production
Gujarat is currently expected to produce 39.14 lakh tonnes of wheat in 2022. Last year, the government imported 1.70 lakh tonnes, which is hardly 5 per cent of the total production from Gujarat. The central government had bought more from Punjab.

Wheat production in the country stood at a record 111.3 million tonnes in 2021-22 and 109.5 million tonnes in the crop year 2020-21.

Wheat cultivation has increased significantly in Kutch and Porbandar, Junagadh, Surendranagar, Amreli, Bhavnagar, Jamnagar, Rajkot.

planting – production
Wheat cultivation in Gujarat is 1 million hectare and production is 3.10 million tonnes and farmers of Gujarat grow only 3.11% of the total production of India.

India has 99 million tonnes in 30 million hectares, 31.88 million tonnes in Uttar Pradesh, 17.85 million tonnes in Punjab, 11.16 million tonnes in Haryana and 9.22 million tonnes in Rajasthan.

production cost per hectare
Uttar Pradesh 36056, Gujarat 31437, Maharashtra 39627, Punjab Rs 29750 per hectare.

From Madhya Pradesh the price is running from Rs 2200 to 2400 per quintal per week.

The demand for Indian wheat has increased in many countries of the world. The minimum support price for wheat procurement in India for the year 2022-23 is Rs 2015 per quintal. But the prices of wheat are high for the last fortnight. In Gujarat, about 4800 km from Ukraine’s capital Kyiv, wheat is being sold for more than Rs 2,200 for 10 days.

The market in India is consistently above 2400. Not in Gujarat.

Russia is the second largest exporter of wheat in the world. Ukraine ranks fourth in this regard. Countries that buy wheat from Ukraine include many Gulf countries of Pakistan and Bangladesh.

, India is also one of the countries where exporters are looking for opportunities to meet the demand for wheat as trade with these two countries has been cut off due to war.

The rising demand for wheat in the world market has also led to a rise in prices.

Before Ukraine crisis, the price of Indian wheat in the global market was ₹ 300-310 per tonne, which has increased to ₹ 360 per tonne in 15 days. If this trend continues, it will reach $ 400 a tonne in the near future. Farmers, Gujarat and India have won the war.

Wheat from Gujarat is similar to wheat from Ukraine, hence the demand from all over the world has come to India. By the end of this financial year and by the end of next year, India’s exports may reach a record 7 million tonnes.

From Ukraine to West Asian countries Turkey, Syria, Oman, Lebanon, Saudi Arabia and there is Ramadan in April. So buying wheat is faster. The goods no longer come from Russia and Ukraine.

The price of flour will increase due to the availability of more expensive goods from the flour mill. This is a favorable and profitable time for wheat farmers.

The arrival of the new crop in the country will start from March 15. But this time the wheat crop has been delayed in most of the states due to seasonal reasons. Because it rained in October.

Government procurement in the country is going to start from April 1. Most of them are from Punjab and Haryana. Where private business is less because it is taxed more. While the exporter’s choice is wheat from some states including Madhya Pradesh, Gujarat and Rajasthan.

Although food grains are being distributed free of cost for two years, the government godowns are full of food grains.

A bumper crop is also expected in April.

wheat is rotten
Till February 16, 26 lakh tonnes of wheat is stored in godowns in the country, while the quota till April 1 is 75 lakh tonnes. This is about three and a half times the fixed quota.

If the temperature remains high, the production is reduced.