Flour increased the tension of the government, the price increased by 40% in 1 year; Know what is the reason?

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Amidst the flour crisis in the neighboring country Pakistan, its price has started skyrocketing in India as well. The price of flour has increased twice in the month of January. According to government data, open flour is being sold at Rs 38 per kg, while its price in packs is Rs 45-55 per kg. 

According to the report, the prices of flour have increased by 40% as compared to last year. In January 2022, the price of loose flour was Rs 25-27 per kg, while branded flour in packs was being sold at Rs 35 per kg. Despite the ban on exports, the rising prices of wheat and flour have increased the tension.  

(Photo-PTI)

What is the effect of the increase in the price of wheat?

1. The prices of flour and semolina are also increasing rapidly, which means inflation is also increasing, due to which the kitchen budget of the common people may go awry. 

2. Earlier wheat and rice were being given in equal quantity in the free ration being given under Pradhan Mantri Kalyan Yojana, but after the increase in the price of wheat, wheat is not being given or less in many states. is. 

Why the prices of wheat or flour are increasing, 3 reasons…

1. Decrease in production due to climate change
India is the second country in the world in wheat production. Uttar Pradesh, Punjab, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Bihar are major wheat producing states, but due to climate change wheat production decreased in 2021-22. 

The month of March 2022 was the hottest in the last 122 years. According to the Meteorological Department, the country’s average maximum temperature in March 2022 was 33.10 degrees Celsius, while the average minimum temperature was 20.24 degrees. Due to this, wheat production decreased to 106 million tonnes from 129 million tonnes. 

(Photo-Getty)

Talking to news agency PTI, agricultural expert Devendra Sharma says – Due to the heat, not only rabi crops were damaged, vegetables were also damaged due to this. Dwarfism was also observed in wheat crops in states like Punjab and Haryana, which could be a result of climate change.

2. Decline in government procurement of wheat
The second reason behind the rise in flour prices is the decline in government procurement of wheat. In 2020-21, Indian government agencies had procured 43.3 million tonnes of wheat. This figure has reached close to 18 million tonnes in 2021-22 i.e. less than half.

Agricultural affairs expert Paramjit Singh explains 2 reasons behind this. 1. Reduction of support price 2. Rules and regulations of government agency in procurement. Paramjeet Singh says- Government of India had kept a support price of around Rs.23 on wheat, but the traders bought wheat from the people by paying Rs.25-26. 

The trader does the process of purchase and weighing at the farmer’s house, while the rules and regulations of the government agencies are very complicated. Because of this also farmers do not want to give wheat to government agencies. 

They further say- Traders from Nepal buy wheat in the border areas of states like Bihar and UP. You can consider Bihar to be a big market as well. 

3. Government policy after the Russia-Ukraine war
The war between Russia and Ukraine started in February 2022. After this, the export of wheat came to a halt all over the world. Despite this, India continued to sell wheat to other countries of the world.

The government had also formed a group of 7 representatives for wheat export, which could negotiate wheat export with the countries. India exported 7.3 million tonnes of wheat in 2021-2022, up significantly from 2.2 million tonnes in 2020-21. 

Paramjit Singh says, ‘This is the result of the short-sighted policy of the government. There was a decrease of 2.2 percent in production, yet the government increased exports.’

However, in view of the wheat stock, the government later banned the export in a hurry, which continues till now. 

Government engaged in reducing prices, will sell wheat in the open market
After the continuous increase in the price of flour, the central government has swung into action. A central government official said that the price at all levels  Efforts are being made to reduce. 

According to the news agency PTI, the central government will sell 30 million tonnes of wheat in the open market from February 1. E-tendering has also been called for this. After this decision of the government, there may be a reduction of Rs 10 per kg in the price of flour in the open.

The government is trying to bring down the price of flour below Rs.30 per kg. The main reason for this is also the assembly elections to be held in 9 states in 2023. Elections have already been announced in the 3 states of North-East Tripura, Nagaland and Meghalaya.

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