Wheat acreage jumps in initial sowing on good weather and firm price

Sowing of wheat and other main rabi crops — namely mustard and chana — has started on a brisk note, according to initial reports. This is mainly owing to favourable weather and firm prices.

According to the latest preliminary data by the Union ministry of agriculture, wheat has been sown in around 0.38 million hectares till October 27. This is almost 80 per cent more than the area covered during the same period last year.

Most of the acreage jump has come from poll-bound Madhya Pradesh, which is normally the first to sow and harvest wheat among major growing states.

Good prices of wheat in the retail markets and a steep hike in minimum support price (MSP) could also be counted as factors that could be influencing farmers’ planting decisions.

A healthy rabi harvest, particularly that of wheat, mustard and chana, could help cool down food inflation and keep prices under check. This is critical for the government as it approaches the big 2024 General Elections.

Among other crops, data showed that pulses has been sown in around 1.67 million hectares till October 27, which is 11.33 per cent more than the area covered during the same period last year. Chana (gram) is the largest pulses grown during the rabi season.

Oilseeds, which is mainly mustard, has been sown in around 2.84 million hectares till October 27. This is 15.45 per cent more than the previous year.

Meanwhile, in a related development, the government on Friday increased the bid quantity under the open market sale scheme (OMSS) for wheat offered from the central pool to 200 tonnes. This is with effect from November 1 and the move may further stabilise prices of wheat and wheat flour.

To boost supply of wheat in the domestic market, bulk buyers like flour millers, and small traders can now bid for 200 tonnes in e-auction against 100 tonnes currently under OMSS.

Food Corporation of India (FCI), the government's nodal agency for procurement and distribution of food grains, is offloading wheat from its buffer stock under the OMSS.

Consequently, the total quantity offered per e-auction across the country has also been increased from 0.2 million tonnes to 0.3 million tonnes, the statement said.

Increase in the bid quantity is aimed at enhancing the availability of wheat in the open market and to further stabilise the prices, it said.

FCI has been selling wheat and rice from the central pool to bulk buyers such as flour millers and small traders under the OMSS since June 28. It is done through a weekly e-auction to control the retail prices of these commodities.

In the 18th round of e-auction on October 26, about 0.19 million tonnes of wheat was sold to 2,318 successful bidders.

The weighted average selling price was Rs 2,251.57 per quintal for fair and average quality wheat, against the reserve price of Rs 2,150 per quintal.

The ministry said traders are kept out of the ambit of wheat sale under OMSS to avoid hoarding of stocks.

Regular checks and inspections are also being made at the flour mills of processors, who have purchased wheat under OMSS, the statement said, adding that 1,627 checks were undertaken till October 16.