Wheat stock in government godowns at 6 year low, how will get relief from expensive wheat flour

Wheat Stock Update: It is an election year, but in the midst of all this, the decreasing government stock of wheat has increased the concern. According to the data of Food Corporation of India FCI, the opening stock of wheat has come down to the lowest level of 6 years. On April 1, 2023, the opening stock of wheat in FCI godowns has come down to 83.45 lakh metric tonnes. Whereas exactly one year ago, on April 1, 2022, the opening stock of wheat in the godowns across the country was 189.9 lakh metric tonnes.

Wheat stock reduced by 57 percent!

It is clear from the data of FCI that the opening stock of wheat 2022 is less than 57 percent this year as compared to last year. In 2021, on April 1, 2021, the stock of wheat was 273 MT and in 2020 it was 247 MT. This is the second time in 10 years when the opening stock of wheat has been less than 85 lakh metric tonnes. Earlier in 2017, this situation was seen. In the last year 2021-22 season, the government had set a target to buy 444 lakh metric tonnes of wheat. However, due to increase in temperature last year, the wheat crop was affected and the government was able to buy only 187.92 lakh metric tonnes of wheat, which was the lowest government procurement in 15 years.

Government target of purchasing 341.5 lakh metric tonnes of wheat

This year too, due to increase in temperature in February and untimely rains in March, there was a possibility of damage to the wheat crop, although there has not been much damage due to the rains. The government has set a target of purchasing 341.5 lakh metric tonnes of wheat this Rabi season. The government estimates that 112.18 million wheat can be produced in the current Rabi season. Government procurement of wheat is going on across the country. However, it is also believed that if the government is not able to purchase according to its target, then this may cause a setback to the government’s efforts to keep a check on wheat prices. The problem in front of the government is also that farmers are getting higher prices of wheat in the open market than the MSP of wheat.

expensive wheat-flour hit

Since Russia’s attack on Ukraine last year, there has been a big jump in the prices of wheat. Firstly, there was a decrease in production and on top of that the prices increased due to the war. Flour has also become expensive due to expensive wheat. After which the government had banned the export of wheat. During February-March this year, the government has sold 50 lakh tonnes of wheat under the Open Market Sale Scheme. After which there has been a slight softening in the prices. But according to the Ministry of Consumer Affairs, the average price of wheat is still Rs 29.08 per kg, which used to be Rs 33.34 per kg on February 1, 2023. On April 12, flour is available at Rs 34.33 per kg, which was available at Rs 38.05 per kg on February 1. However, despite this, flour has become costlier by 35 to 40 percent in a year.

Efforts to bring down the prices of wheat flour

However, the Lok Sabha elections are to be held after one year, in such a situation the government will try to buy more wheat so that the prices of wheat flour can be reduced in the market. And this year there is no clarity regarding the production, in such a situation the government is not going to allow the export of wheat again.

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