Among various issues of the Indian agrochemical industry, the Crop Care Federation of India (CCFI) has raised concerns about imports of agrochemicals in India.
The industry body is seeking the Central Government’s intervention for the incorporation of increased customs duty on technical and formulation imports in the Budget 2023-24.
In a communication sent last week to Mr. Sanjay Malhotra, Secretary, Department of Revenue, Ministry of Finance, the association reiterated the concern about the surge in imports and requested corrective measures.
Mr. Harish Mehta, Senior Advisor at Crop Care Federation of India (CCFI) told Krishak Jagat, “The very concept of building a competitive economic system for the domestic industry has been hampered. There has been a 37% surge in agrochemical imports of ready-made formulations mainly by importers reaching the figure of Rs. 12,418 crores in 2020-21 from Rs. 9,096 crores in 2019-20. For the year 2021-22 the imports are to the tune of Rs. 13,365 crores as per Ministry of Commerce.”
As per CCFI, the quality of agrochemicals manufactured by indigenous manufacturers matches global standards and is being already exported to 130 countries. To push the domestic sector to the next level, the industry body has recommended four areas of improvement to the government.
Increase in Customs Duty
CCFI has suggested that non-essential imports should be stopped and simultaneously the customs duty on imports of the technical grade should be enhanced from the present 10% to 20%.
Likewise, custom duty on ready-made formulations must be enhanced from the present 10% to 30% to safeguard the Indian Industry. The government agrees that there has been a delta in the customs duty structure.
Mandatory registration of Technical before import of ready-made formulation
This has been one of the major pain points of the indigenous agrochemical industry as importers and traders, clandestinely import ready-made formulations which impact local manufacturers. This needs to be stopped as Indian manufacturers have the technical capability and capacity to meet the requirement.
Not to reduce GST rates on Agrochemicals
The current rate of GST on agrochemicals is at 18% and majorly covers all the goods and services procured by the industry and thereafter the product sold by the industry across the value chain are at 18%. This is in line to provide a balance and seamless flow of credit and its utilization. It also avoids the distortion caused due to inverted duty structure. This rate covers more than 90% of the goods and services which are subject to GST in the sector.
“Any reduction or exemption would result in loss of revenue estimated at Rs. 4,500 crores annually to the government, besides blocking of working capital which would increase the cost of business”, mentioned Mr. Mehta.
Inclusion of the Agrochemical sector in the PLI Scheme
CCFI has already submitted its proposal to the Secretary of Chemicals, Department of Chemicals & Petrochemicals for inclusion under the PLI Scheme. This will push India to emerge as a manufacturing hub and gain leadership.
The industry body expects an investment of Rs. 12,000 crores in the next 3 years after its implementation.
“A corpus of Rs. 500 crores should be provided by the government to follow the policy of Make in India and Atmanirbhar Bharat for which Indian manufacturers are committed”, said Mr. Mehta. The industry body is hoping that the corrective measures will be incorporated by the government and this will provide a substantial push to the domestic manufacturers to prepare for further investments.
Kisan Diwas or National Farmers’ Day is observed across the country on December 23 to honour farmers, the backbone country. The central government offers various schemes for farmers and the agricultural sector. Know all about Kisan Credit Card, Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri Kisan Samman Nidhi and 3 other beneficial govt schemes for farmers.
Kisan Diwas or National Farmers’ Day is observed across the country on December 23 to honour farmers, the backbone country. It is celebrated on this day every year in honour of Chaudhary Charan Singh, a farmers’ leader who became India’s fifth prime minister.
The central government offers various schemes for farmers and the agricultural sector. Here are six schemes that the central government offers to the farmers.
1. Kisan Credit Card
In 2020, the central government launched a revised Kisan Credit Card (KCC) scheme which aims at providing adequate and timely credit support from the banking system under a single window to the farmers for their cultivation and other needs, according to PIB. Eligibility: 1) All Farmers – individuals/joint borrowers who are owner cultivators 2) Tenant farmers, oral lessees & share croppers 3) Self-help groups (SHGs) or joint liability groups of farmers including tenant farmers, share croppers, etc.
Objective: Kisan Credit Card Scheme aims at providing adequate and timely credit support from the banking the system under a single window to the farmers for their cultivation & other needs: a) To meet the short-term credit requirements for the cultivation of crops b) Post-harvest expenses c) Produce Marketing loan
d) Consumption requirements of farmer household e) Working capital for maintenance of farm assets and activities allied to agriculture, like dairy animals, inland fishery, etc. f) Investment credit requirement for agriculture and allied activities like pump sets, sprayers, dairy animals, etc
Features: According to PIB, here are the salient features of the Kisan Credit Card Scheme
1) It provides the facility of an ATM-enabled RuPay Card, one-time documentation, built-in cost escalation in the limit, and any number of drawals within the limit. 2) The scheme was further extended for the investment credit requirement of farmers viz. allied and non-farm activities in the year 2004.
3) KCC covers post-harvest expenses, produce marketing loans, consumption requirements of farmer households, working capital for maintenance of farm assets and activities allied to agriculture, and investment credit requirement for agriculture and allied activities. 4) The Kisan Credit Card Scheme is implemented by Commercial Banks, RRBs, small finance banks, and cooperatives. 5) Loan facility is also available
2. Pradhan Mantri Fasal Bima Yojana (PMFBY)/Restructured Weather-Based Crop Insurance Scheme (RWBCIS): Pradhan Mantri Fasal Bima Yojana (PMFBY) & Restructured Weather Based Crop Insurance Scheme (RWBCIS) were launched 2016 to provide comprehensive crop insurance coverage from pre-sowing to post-harvest losses against non-preventable natural risks.
The scheme aims at supporting sustainable production in the agriculture sector by way of – a) providing financial support to farmers suffering crop loss/damage arising out of unforeseen events b) stabilizing the income of farmers to ensure their continuance in farming c) encouraging farmers to adopt innovative and modern agricultural practices d) ensuring flow of credit to the agriculture sector.
These schemes will contribute to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks, according to the ministry.
These schemes are the only risk mitigation tools available to farmers at extremely low premium rates payable by farmers at 2 per cent for Kharif crops, 1.5 per cent for Rabi Crop, and 5 per cent for annual commercial/horticultural crops. The balance of the actuarial premium is shared by the central and state governments on 50 : 50 basis, as per PIB. The schemes are voluntary for states and available in areas and crops that are notified by the state governments. Further, the schemes are compulsory for loanee farmers and voluntary for non-loanee farmers.
Over 36 crore farmer applications have been insured under Pradhan Mantri Fasal Bima Yojana, with over Rs 1,07,059 crores of claims already been paid under the scheme as of February 4, 2022, as per the Ministry of Agriculture & Farmers Welfare.
3. Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY) Launched in 2019, Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY) is a voluntary and contributory pension scheme for small and marginal farmers. It was launched to ensure better income for the farmers in the country. All small and marginal farmers having cultivable land holding up to two hectares falling in the age group of 18 to 40 years, whose names appear in the land records of states/UTs as of 01.08.2019 are eligible to get benefits under the scheme, according to the FAQ released by PIB.
armers will have to contribute an amount between Rs 55 to Rs 200 per month to the pension fund, depending on their age. They have to contribute for a minimum of 20 years to be eligible for the pension at the age of 60. You can contribute to the pension for a maximum of 42 years. Under this scheme, the farmers will get a monthly pension of Rs 3,000 after attaining the age of 60 years, as per PIB.
As on January 31, 2022, a total of 21,86,918 farmers are enrolled in the scheme.
4. Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) The central government launched Pradhan Mantri Krishi Sinchayee Yojana in 2015 with to motto of ‘Har Khet Ko Paani’. The scheme was implemented to expand the cultivated area with assured irrigation, reduce wastage of water and improve water use efficiency. PMKSY not only focuses on creating sources for assured irrigation but also creates protective irrigation by harnessing rain water at the micro level through ‘Jal Sanchay’ and ‘Jal Sinchan’. Over 10 lakh ha. covered under micro-irrigation for the year 2021-22, as per the official website.
5. Pradhan Mantri Kisan Samman Nidhi (PM KISAN) Started in 2018, Pradhan Mantri Kisan Samman Nidhi aims to provide income support to all small and marginal landholding farmer families to supplement their financial needs. Under the scheme, landholder farmer families are eligible for Rs 6,000 per annum per family payable in three equal installments, every four months. The scheme was initially meant for small and marginal farmers (SMFs) having landholding up to 2 hectares but the scope of the scheme was extended to cover all landholding farmers with effect from 01.06.2019, according to PIB.
More than Rs 2 lakh crore has been transferred to about 11.37 crore eligible farmers through this scheme till August 2022. The benefit of PM-KISAN is given only to the farmers with land holdings. A database is being created for the quick identification of eligible farmers for PM-KISAN and other schemes and farmers’ welfare schemes to be launched in the future. It will have all the information including the Aadhaar, and bank account of farmers and the land records of farmers will be linked with their records, the Ministry of Agriculture & Farmers Welfare said earlier.
6. Restoring Interest Subvention Scheme In August 2022, the Union cabinet approved to restore interest subvention on short-term agriculture loans to 1.5 per cent for all financial institutions. “The interest subvention of 1.5 per cent will be provided to lending institutions (public sector banks, private sector banks, small finance banks, regional rural banks, cooperative banks, and computerised PACS directly ceded with commercial banks) for the financial year 2022-23 to 2024-25 for lending short term agri-loans upto Rs 3 lakh to the farmers.” PACS stands for primary agricultural credit society,” according to an official statement by the Union cabinet.
Thus, an interest subvention of 1.5 per cent will be provided to lending institutions for the financial year 2022-23 to 2024-25 for lending short-term agri-loans up to Rs 3 lakh to the farmers.
“Increase in interest subvention will ensure the sustainability of credit flow in the agriculture sector as well as ensure financial health and viability of the lending institutions especially regional rural banks and cooperative banks, ensuring adequate agriculture credit in the rural economy,” according to the Union Cabinet.
The increase in crop area is across all crops with the highest in wheat. Out of the 25.99 lakh hectares increase in all rabi crops, the increase in wheat area is 9.65 lakh hectares from 302.61 to 312.26 lakh hectares. Though the sowing of rabi crops is still under progress, the area brought under wheat this year (312.26) till 23-12-2022 is more than the normal rabi sown area (304.47) and the total sown area of last year (304.70).
Farmers in India have sown rabi crops across 620.62 lakh hectares as of Friday, an increase of 4.4 per cent year-on-year from the previous cropping season, Union farm ministry data showed. During the same period last year, the total acreage was 594.62 lakh hectares.
The increase in crop area is across all crops with the highest in wheat. Out of the 25.99 lakh hectares increase in all rabi crops, the increase in wheat area is 9.65 lakh hectares from 302.61 to 312.26 lakh hectares.
Though the sowing of rabi crops is still under progress, the area brought under wheat this year (312.26) till 23-12-2022 is more than the normal rabi sown area (304.47) and the total sown area of last year (304.70).
The agriculture ministry said the rise in the wheat area is assuring in the background of the crisis faced by the world for wheat availability due to the Russia-Ukraine war and for India’s own food security. Record production of wheat is also expected this year.
In the oilseeds group, rapeseed and mustard contributed the maximum in increasing the oilseed area during this Rabi season.
Mustard area increased by 7.32 lakh hectares from 85.35 lakh hectares in 2021-22 to 92.67 lakh hectares in 2022-23. Out of 8.20 lakh hectares increase in area under oilseeds, rapeseed and mustard alone accounted for 7.32 lakh hectares.
“Implementation of Special Mustard Mission for last 2 years is mainly responsible for the renewed interest of farmers in the cultivation of mustard,” the Ministry of Agriculture and Farmers Welfare said in a statement on Friday.
The ministry said timely supply of quality seeds, among others, are a few of such interventions taken to increase agricultural production and productivity and these interventions have contributed to the large increase in area under rabi crops this year.
Speaking on the demand of farmer groups to make MSP a legal right, Chand noted that cultivators want it to get the best price for their produce and also to protect themselves from price fluctuations.
The minimum support price (MSP) of crops can guarantee stable prices but not always the best rates, which can only be ensured through fair competition in the market, Niti Aayog member Ramesh Chand said on Friday. He was addressing an agriculture conclave organised by Rural Voice, a digital media platform.
Speaking on the demand of farmer groups to make MSP a legal right, Chand noted that cultivators want it to get the best price for their produce and also to protect themselves from price fluctuations.
“In my view, MSP is not the best price in all situations. It is definitely a stable price but not the best price. Best price comes from competition. If there is competition in the market, farmers can get the best price,” he said.
The government fixes MSP for 22 crops. It procures wheat and paddy for supply through ration shops under welfare schemes. Some quantities of oilseeds and pulses are also procured.
Chand, who is also a member of the government- appointed committee on MSP, cautioned that one should not become too dependent on MSP, adding that farmers should take advantage of market opportunities.
He further said maximum growth is being witnessed is those sectors where the government’s intervention on the price front is minimum.
To press his point, he cited the rapid and sustained growth witnessed in allied sectors like dairy, fisheries and horticulture.
Therefore, Chand added, “We should not think that the MSP system could give best price in all situations and circumstances.”
Observing that the MSP has its own role to play in special situations, Chand said it also kills the farmers’ entrepreneurial skills to deal with the market movements.
Referring to the demand for making MSP a legal right, Chand said it will have several implications and added that three prices will have to be considered — MSP, fair market price and actual market price.
In case the fair market price is more than the MSP, then making the support price legal would work.
However, if the fair market price is lower than the MSP, then businessmen will withdraw from the market, creating a fiscal problem for the government.
In July this year, the government formed a committee on MSP, as it had promised while withdrawing the three contentious farm laws against which farmers had been agitating for more than a year.
The committee is looking at ways to make the MSP system more effective and transparent. It will also explore other issues, including giving more autonomy to the Commission for Agricultural Costs and Prices (CACP) that fixes the MSP of crops.
Like last year, there have been no reports of extreme temperatures from wheat-growing states so far. This augurs well for the crop prospects, he added. Farmers have brought more area under the wheat crop this year in anticipation of getting higher than the minimum support price (MSP) amid export demand, another ministry official shared. In the 2021-22 crop year, the domestic production fell to 106.84 million tonnes from 109.59 million tonnes in the previous year due to heatwaves in some of the producing states.
Agriculture Secretary Manoj Ahuja on Thursday said there is a bright prospect of wheat crop in key growing states as the current temperature remains conducive for plant growth and higher yield. Till last week, there was a 3 per cent increase in wheat acreage at 286.5 lakh hectares in the ongoing rabi season that began in October, according to the agriculture ministry’s data.
“Wheat crop prospect is bright. The current weather remains conducive for the plant growth and better yields,” Ahuja told PTI on the sidelines of a millet luncheon organised by the Union Agriculture Minister at his residence ahead of the 2023 International Year of Millets.
Better weather conditions and higher area under the crop are expected to lead to higher production in the 2022-23 crop year (July-June), he said.
Like last year, there have been no reports of extreme temperatures from wheat-growing states so far. This augurs well for the crop prospects, he added. Farmers have brought more area under the wheat crop this year in anticipation of getting higher than the minimum support price (MSP) amid export demand, another ministry official shared.
In the 2021-22 crop year, the domestic production fell to 106.84 million tonnes from 109.59 million tonnes in the previous year due to heatwaves in some of the producing states.
Consequently, wheat procurement by state-owned FCI fell to 187.92 lakh tonne in the 2022-23 marketing year from 434.44 lakh tonne due to a fall in domestic output and aggressive purchases by private parties.
In May this year, the government banned exports of wheat to boost domestic supplies and control prices.
The minister said that for increasing the production of Nutri-Cereals under National Food Security Mission (NFSM) programme, the NFSM-Nutri Cereals is being implemented in 212 districts of 14 states
NEW DELHI : Centre has planned to increase millets production and has fixed annual target for the millet production, said Union Minister of state for Consumer Affairs, Food and Public Distribution, Sadhvi Niranjan Jyoti.
In a written reply to a question in Lok Sabha, the minister said that for increasing the production of Nutri-Cereals under National Food Security Mission (NFSM) programme, the NFSM-Nutri Cereals is being implemented in 212 districts of 14 states.
Jyoti added that under NFSM, assistance is given through state governments to farmers for interventions like cluster demonstrations on improved package of practices, demonstrations on cropping system, distribution of seeds of High Yielding Varieties (HYVs)/hybrids, improved farm machineries/resource conservation machineries/tools, efficient water application tools, plant protection measures, nutrient management/soil ameliorants, processing & postharvest equipments, cropping system based trainings to the farmers etc.
She said that the mission also provides support to Indian Council of Agricultural Research (ICAR) & State Agricultural Universities (SAUs)/Krishi Vigyan Kendras (KVKs) for technology back stopping and transfer of technology to the farmer under supervision of Subject Matter Specialists/Scientists.
“The research organizations are supported for undertaking research projects that can help enhancing production and productivity of food crops,” the minister added.
Jyoti said that the State Governments can also promote cultivation of millets under Rashtriya Krishi Vikas Yojana – Remunerative Approaches for Agriculture & Allied Sector Rejuvenation (RKVY- RAFTAAR) with the approval of the State Level Sanctioning Committee (SLSC) of the respective states.
Launched in 2016, the PMFBY provides for comprehensive risk insurance against crop damage due to non-preventable natural risks from pre-sowing to post-harvest for the crops/areas notified by the concerned state government. “The scheme has already become the number one crop insurance scheme in the world in terms of farmer applications enrolled. In terms of gross premium, the scheme is the 3rd largest in the world,” Tomar said.
The Pradhan Mantri Fasal Bima Yojana (PMFBY) has become the world’s number one crop insurance scheme in terms of farmer applications enrolled, Agriculture Minister Narendra Singh Tomar informed Parliament on Tuesday. The PMFBY is also the world’s third-largest crop insurance scheme in terms of gross premium, Tomar said in his written reply to the Lok Sabha.
Launched in 2016, the PMFBY provides for comprehensive risk insurance against crop damage due to non-preventable natural risks from pre-sowing to post-harvest for the crops/areas notified by the concerned state government.
“The scheme has already become the number one crop insurance scheme in the world in terms of farmer applications enrolled. In terms of gross premium, the scheme is the 3rd largest in the world,” Tomar said.
The minister said 832.24 lakh farmers enrolled under the PMFBY during 2021-22 fiscal. The premium paid by farmers stood at Rs 3,77,026 crore while claims paid were Rs 13,728.63 crore during 2021-22.
As per the provisions of the scheme, the actuarial/bid premium rate is charged by the insurance companies. But the farmer has to pay only a maximum premium of 1.5 per cent and 2 per cent for Rabi and Kharif food and oilseed crops, respectively and 5 per cent for commercial/horticultural crops.
The remaining part of the actuarial/bidded premium is shared on 50:50 basis by the central and concerned state government except in North Eastern States where it is shared in the ratio of 90:10.
The PMFBY is mainly implemented on an ‘Area Approach’ basis. Admissible claims are worked out and paid directly to the insured farmer’s account by the insurance companies based on the season-end yield data, furnished to the concerned insurance company by the concerned state government and claim calculation formula envisaged in the Operational Guidelines of the scheme.
However, losses due to localized risks of hailstorm, landslide, inundation, cloud burst and natural fire and post-harvest losses due to cyclone, cyclonic/unseasonal rains and hailstorms are calculated on individual insured farm basis. These claims are assessed by a joint committee comprising representatives of state government and concerned insurance company, the minister added.
Wheat prices have surged in India this year after a sudden rise in temperatures hit crop yields and output.
India is set to offer 2 to 3 million tonnes of wheat to bulk consumers such as flour millers and biscuit makers as part of efforts to cool record high prices, two government sources said, even as state reserves have dropped to the lowest in six years.
Wheat prices have surged in India this year after a sudden rise in temperatures hit crop yields and output.
A jump in exports following Russia’s invasion of Ukraine also pushed up local wheat prices, prompting India, the world’s second-biggest producer of the grain, to order a ban on exports in May, but that has failed to stop domestic prices rising.
As open market prices rose above the rate at which the government buys the staple from domestic farmers, state purchases of wheat have fallen by 53% this year to 18.8 million tonnes.
“We’re planning to offload wheat in the open market to control prices as we can’t afford to have yet another year of lower procurement (when purchases start in March/April 2023),” said one of the sources. “In terms of stocks, we have the elbow room to intervene in the market.”
The government buys rice and wheat from farmers at state-set prices to run the world’s biggest food welfare programme that entitles about 800 million people to receive 5 kg of rice and wheat every month at 2 rupees ($0.02) and 3 rupees a kg respectively.
The plan is to free up 2 to 3 million tonnes of wheat for sale to bulk users, the sources said.
India’s falling wheat reserves, and rising prices of the staple are a far cry from overflowing granaries that allowed the country to export a record 7.2 million tonnes of the grain in the fiscal year to March 2022.
“We’re confident that the release of 2 to 3 million tonnes of wheat in the open market will bring prices down,” said the second source.
The two sources with direct knowledge of the matter didn’t wish to be named, in line with official policy.
They also said the government will decide later this month whether to extend the food programme that provides free rice and wheat to the poor.
On top of the flagship food welfare scheme, Prime Minister Narendra Modi in April 2020 introduced the free food programme as part of the government’s COVID-19 relief measures.
In September, ahead of some crucial state elections, Modi’s administration extended the programme by three months, adding $5.46 billion to government spending and making it challenging to rein in the fiscal deficit.
As well as the cost, government officials have cited lower government wheat stocks as a serious impediment to continuing with the free food plan that requires between 95 and 100 million tonnes of rice and wheat every year.
“The government is in a tight spot due to lower stocks and that’s why it would be difficult to continue with the free food programme without any curtailment,” said a New-Delhi-based trader with a global trade house.
Niti Aayog has given its views on the drafts of Spices (Promotion and Development) Bill, 2022; Rubber (Promotion and Development) Bill, 2022; Coffee (Promotion and Development) Bill, 2022; Tea (Promotion and Development) Bill, 2022 and Tobacco Board (Amendment) Bill, 2022. The ministry had earlier also conducted stakeholder consultations on these drafts to address their concerns.
The commerce ministry is likely to engage with Niti Aayog to rework the five draft bills pertaining to cash crops tea, coffee, spices, rubber, and tobacco, an official said. Earlier this year, the ministry proposed the repeal and updation of decades-old laws on these sectors and to introduce new legislation with a view to promoting their growth and creating a conducive environment for businesses.
“Niti Aayog has raised certain objections with the ministry on these five bills. The issues were recently discussed in a meeting between senior officials. Niti Aayog suggested a relook and the ministry has sought its help on that,” the official said.
Niti Aayog has given its views on the drafts of Spices (Promotion and Development) Bill, 2022; Rubber (Promotion and Development) Bill, 2022; Coffee (Promotion and Development) Bill, 2022; Tea (Promotion and Development) Bill, 2022 and Tobacco Board (Amendment) Bill, 2022.
The ministry had earlier also conducted stakeholder consultations on these drafts to address their concerns.
Department of commerce proposes the repeal of Tea Act, 1953;Spices Board Act, 1886; Rubber Act,1947; and updation of Tobacco Board Act,1975.
According to the draft bills posted on the website of the commerce ministry, the new proposed legislations reflect the present realities and objectives of these sectors.
Explaining the rationale behind the proposal to repeal the Rubber Act, the draft bill says that in recent years, there have been widespread changes in the industrial and economic scenario especially with regard to development in rubber and allied sectors.
The draft Coffee (Promotion and Development) Bill, 2022, has underlined that substantive portions of the existing Act dealing with pooling and marketing of coffee have become redundant/inoperative.
According to draft Spices (Promotion and Development) Bill, 2022, there is a need to enable the Spices Board to provide focused attention across the entire supply chain of spices.
The ministry proposes repeal of the archaic Tea Act as there is a paradigm shift in the recent decade with respect to the way tea is grown, marketed and consumed.
The draft bill on tobacco seeks to update the existing law by promoting ease of doing business in the sector and enabling the functioning of a modern tobacco board.
It dips to the lowest on April 1 as accumulated stocks get released for beneficiaries of government schemes ahead of the new crop coming in.
India’s stockpile of wheat was above the buffer stock norm at the last scheduled count on October 1 and the next such quarterly review which takes into account seasonal procurement cycle, will be due on January 1. According to a written reply to a question in Rajya Sabha by Food and Consumer Affairs Minister Piyush Goyal, the minimum buffer requirement changes every quarter, peaking on July 1 when procurement of Rabi crop ends.
It dips to the lowest on April 1 as accumulated stocks get released for beneficiaries of government schemes ahead of the new crop coming in.
As per the reply, India’s wheat stock was 227.46 lakh tonnes on October 1, 2022, as compared to the buffer norm of 205.20 lakh tonnes.
The stockpile has since dwindled to 190.27 lakh tonnes as on December 1, 2022, primarily due to the release of foodgrain for supply to poor beneficiaries while hardly any procurement was added to the stockpile.
At the next count on January 1, the buffer requirement of wheat is 138 lakh tonnes.
On Thursday, the ministry said in a statement that the Government of India has sufficient food grain stocks under the central pool to meet the requirement of NFSA (National Food Security Act) and its other welfare schemes as well as for additional allocation of PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana).
About 159 lakh tonnes of wheat will be available as on January 1, 2023, which is well above the buffer norm requirement of 138 lakh tonnes, it had said. As on December 12, around 182 lakh tonnes of wheat is available in the central pool.
In the written reply to Rajya Sabha, the average retail prices of wheat in the country stood at Rs 31.38 per kg in November, up 7 per cent from rates in May when a ban was imposed on exports of wheat.
Wheat procurement in rabi marketing season (April-June) of 2022-23 fell to 187.92 lakh tonnes as against 433.44 lakh tonnes in 2021-22 as market price of wheat was higher than the ruling MSP.
India’s wheat production declined to 106.84 million tonnes in the 2021-22 crop year (July-June) from 109.6 million tonnes in the previous year due to heat waves in certain states like Punjab and Haryana.
