ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Roller-coaster Ride of the Wheat Economy of India

This paper deals with the trends in wheat production and exports. It explains the consequences of decreasing productivity and lower procurement. However, tapping the full potential can ensure larger wheat exports and motivate higher production which can help in doubling farmers’ income. But it can have a negative impact on food inflation.

In the past few months, the Indian wheat sector has seen unexpected developments in production and trade. Wheat production, which was estimated at around 111.32 million tonnes in the second advance estimates of 2022–23 was revised down by 6 to 10 million tonnes because of sudden heat waves just before the harvesting season in March 2022. On the other hand, due to the Russia–Ukraine crisis, wheat shipments to the Black sea region were blocked and even the largest wheat importer, Egypt, is looking at India to provide wheat supply (Haq 2022).

Exports eventually picked up and reached up to 7 million metric tonnes (MMT) in 2021–22 and still rose continuously. Lower production along with higher exports hampered wheat procurement and it fell to 17.5 MMT, far below the earlier expected 44 MMT. This was later revised to 19.5 MMT. To develop a better understanding of the implications of lower wheat procurement, it is important to understand production and productivity trends of wheat.

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Updated On : 19th Jul, 2023
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