Better days seen as area under wheat, pulses goes up
NEW DELHI: The area under wheat, oil seeds and pulses increased substantially from a year ago, giving the hope that these essential items of consumption will not add to inflation pressures. The government is battling a high food inflation, triggered largely by expensive fruits and vegetable prices.
The inflation in cereals and vegetables has been subdued even as overall food inflation is in excess of 15%.
However, the increase in the wheat acreage by almost 9 lakh hectares from a year ago has triggered apprehensions among analysts that a bumber crop is likely to create a huge storage problem for the government.
The wheat yield is also expected to be higher because of the good weather conditions.
"Storage is going to be a killer. Wheat production will be around 82 million tonnes or even higher this winter. Where will they store the new crop?" a sectoral monitor dealing with the food sector said.
The government has estimated a 82 million tonnes of wheat production this year. Last year, wheat production was at 80.17 million tonnes.
"Even pushing out existing crop at very cheap rates through the OMSS (open market sale scheme) is not working fast enough to help matters. There is urgent need for a long term grain storage policy which can be implemented at the earliest," he said. The Crop Weather Watch Group ( CWWG )) data submitted to the government on Friday on the basis of inputs from states on acreage this winter also pointed to pulses acreage having gone up by 11.11 lakh hectare to 148 lakh hectare.
The acreage under oilseeds has risen 3.23 lakh hectares.
However, there was a corresponding decline in area under other marginal rabi crops rice, jowar and ! maize we re lagging behind from the year-ago period.
The inflation in cereals and vegetables has been subdued even as overall food inflation is in excess of 15%.
However, the increase in the wheat acreage by almost 9 lakh hectares from a year ago has triggered apprehensions among analysts that a bumber crop is likely to create a huge storage problem for the government.
The wheat yield is also expected to be higher because of the good weather conditions.
"Storage is going to be a killer. Wheat production will be around 82 million tonnes or even higher this winter. Where will they store the new crop?" a sectoral monitor dealing with the food sector said.
The government has estimated a 82 million tonnes of wheat production this year. Last year, wheat production was at 80.17 million tonnes.
"Even pushing out existing crop at very cheap rates through the OMSS (open market sale scheme) is not working fast enough to help matters. There is urgent need for a long term grain storage policy which can be implemented at the earliest," he said. The Crop Weather Watch Group ( CWWG )) data submitted to the government on Friday on the basis of inputs from states on acreage this winter also pointed to pulses acreage having gone up by 11.11 lakh hectare to 148 lakh hectare.
The acreage under oilseeds has risen 3.23 lakh hectares.
However, there was a corresponding decline in area under other marginal rabi crops rice, jowar and ! maize we re lagging behind from the year-ago period.
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