Will India Continue Being the 2nd Largest Producer of Wheat in 2021?

 


As the harvest season is fast approaching, the farms of India and the people are getting more and more anxious about what is going to happen to the wheat crops. This apprehension comes from the fact that India is the 2nd largest wheat producing country of the world and the main question facing the nation is whether we will be able to uphold the same position this year too?

The wheat production in India has been steady since FY2016-17 with lesser pest attacks and distorted weather, but is it going to be the case this time?

Brief overview of the Harvest in India

India is likely to set a record for wheat manufacturing as predictions state that food grain production is going to hike up to 115 million tons as compared to 107 million tons last year.

Despite the pan-India locust attack, the crops have given a bumper estimate produce because of sufficient rains which didn’t ruin the fields and the good weather conditions in India.

Plight of the Farmers 

(Source- FirstPost)

However, at the end what matters is plight of the farmers who will be harvesting the crops. Unfortunately, the farmers who were supposed to be working on their fields, smiling over the lushing greenery are nowhere to be seen. Instead, they are seen fighting for their survival and protesting over the 3 contentious farm bills.

At this point, it doesn’t matter what the verdict is going to be, whether it will be in favor of the farmers or against it, we know one thing for sure, that if the situation gets worse, the direct effect will be on the crops’ harvest which ultimately will lead to a degraded quality, lower margins for the farmers and hence, an increase in the wheat prices.

Trends in the wheat market

Over the last few weeks, it has been seen that the wheat manufacturers are trying to give discounts and offers to the customers in response to the good harvest of the crops.

Even the brand, Ashirwaad by ITC, is giving free 100g turmeric powder with their wheat sacks, but it creates a certain space for doubt as to how they would come up with the same offers and incentives when it’s time for harvesting but there aren’t be any farmers around to harvest.

This would bring to the forefront the real profit-oriented motive of manufacturers and wholesalers, who have been storing wheat and other items in bulk just to sell them in times of scarcity so that they can hike the prices.

To avoid this hike in prices, the concept of minimum support price is necessary. It actually ensures that the farmers get the right value of their harvest

The farmers protest is a boiling topic and nobody can figure out what is going to happen in the near future.

However, if India is able to set the record for highest wheat manufacturing of all time, it definitely will be a moment of pride but will it be the same emotionally and financially for farmers? Only time will tell.


Written by - Anamika Malik

Edited by - Tushna Choksey