The Indian government has enough food grain reserves in its Central Pool to meet the needs of the National Food Security Act (NFSA) as well as other welfare schemes, as well as any additional allocations for the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).
About 159 LMT of Wheat will be available as of the 1st of January 2023, which is well above the buffer norm requirement of 138 LMT for that date. Around 182 LMT of Wheat will be available in the Central Pool as of 12.12.2022.
The Government of India is well aware of the price scenario of Wheat and other commodities and is constantly monitoring it regularly on a weekly basis, taking corrective measures as and when required.
The Government of India has taken proactive steps to ward off any further price rises, and export regulations were imposed with effect from 13.05.2022.
Moreover, the allocations for NFSA and PMGKAY have been revised in favor of rice to ensure that there is enough wheat in the Central Pool to meet the needs of Welfare Schemes.
The government of India has increased the MSP of a wheat crop this year to Rs. 2125 per quintal against last year’s MSP. 2015/QTL for RMS 2022-23. Thus, an increase in MSP of Rs. 110/QTL Coupled with a fairly good climate, it is expected that wheat production will be normal during the next season.
Wheat procurement in the next season will start from April 2023 and as per the initial assessment, there has been a good increase in sowing of the wheat crop as compared to last year.
The Government of India has ensured that there is a sufficient stock of food grains in the Central Pool to meet the requirements of all the Welfare Schemes across the country and that prices remain under control.
Even though the procurement of Wheat last season was lower because of the reduced production and farmers selling at prices higher than the MSP in the open market because of the geopolitical situation, enough stock of Wheat will still be available in the Central Pool to cover the needs of the country until the next Wheat crop arrives.