Business Standard

FMCG firms to shell out more for Sharbati wheat

Related News

FMCG companies, which buy the Sharbati variety of wheat, will have to shell out more for the commodity as poor rains have badly hit the Malwa plateau — the sole producer of the high-protein variety in India.

The prices of Sharbati are hovering around Rs 2,500-3,000 a quintal and are likely to touch Rs 4,000 a quintal. Sharbati wheat is in good demand in pasta and biscuit manufacturers and chakki fresh atta makers.

The third-largest wheat producing state of the country is going to suffer this year in terms of production. With prices of Sharbati flaring up, the arrival trend does not augur well for farmers, particularly Malwa farmers.

A fast-depleting water table and scanty rainfall have badly affected the productivity, which according to farmers, has slipped to as low as 5 quintals per hectare. Though the state agriculture department does not buy the farmers’ figures, the Malwa belt reported no crop in 150,000 hectares.

Though multinational companies such as ITC, Cargill and Hind Lever have not started procuring Sharbati yet, the shortage will restrict it to even less than last year’s level of 700,000 tonnes. Firms such as ITC have set up e-choupal and choupal sagar — information centres and wheat procurement centres across the state. As of now, few MNCs have reportedly started procuring Lok-1 variety of wheat.

“The MNCs are likely to start procuring from the next week or fortnight,” Pravesh Sharma, principal secretary, department of agriculture, told Business Standard.

“This year, production is likely to remain stagnant at 6 million tonnes despite a fall in acreage by 250,000 hectares. We managed to maintain the production at last year’s level by supplying certified seeds to rain-fed areas such as Gwalior-Chambal and Bundelkhand belt. As of now, we have procured 500,000 tonnes of wheat against the targeted 2 million tonnes,” Sharma said.

He claims that productivity has gone up from 17 quintals per hectare to 19 quintals this year. “Also, we ran some programmes to assist farmers scientifically to improve productivity. The arrival trend in mandis reflects that the productivity has gone up. We have procured 500,000 tonnes of wheat so far as against 200,000 tonnes at the same time last year.”

Madhya Pradesh is also the only state to pay Rs 50 bonus on a minimum support price of Rs 1,080. However, farmers in the Malwa belt are not happy: “This year, my field received no rains and there is no irrigation facility to my fields,” Rajkumar Verma, a farmer in Nasrullaganj said.

The state has agri-export zones in Bhopal and Malwa region for the commodity.

The zone which have suffered due to scanty rainfall include; Bhopal, Sehore, Ashta, Ratlam, Ujjain, Indore, Dhar, some parts of Vidisha, Hoshangabad, Harda, and Raisen districts.

Read more on:   
|

Read More

Cotton yarn exports to touch record high in FY13

This financial year, cotton yarn exports are expected to touch an all-time high, owing to good demand from China. Textile Commissioner A B Joshi said ...

Quick Links

 

Market News

HKEx aims to expand mini contracts to more metals and coal

Hong Kong Exchanges and Clearing Ltd (HKEx) plans to expand the range of its three "mini" contracts to include more base metals as well as coal, ...

Adverse market conditions forcing closure of oilseed crushers

Refiners prefer to import crude palm oil from Malaysia and Indonesia, finding this cheaper than local crushing

Muhurat trading: Sensex gains 64 points; Nifty ends at 8015

Markets gained for the fifth straight session to end the customary 'Muhurat' trading session held to usher in Samvat 2071 on a firm note

Financial Technologies gains 10% on heavy volumes

The stock zoomed 46% from its 52-week low of Rs 136 touched during intra-day on Wednesday.

PMC Fincorp soars over 25% in two days post stock split

The stock rallied 27% to Rs 213 from Rs 168 (adjusted to stock split) on October 22 on the Bombay Stock Exchange.

Back to Top