Favorable Weather and Expanded Acreage Signal Bumper Wheat Crop for India in 2024-25

India to Reap Record Wheat Crop in 2024-25 with Acreage Increasing and Weather Favorable

India is likely to reap an all-time high wheat crop in the 2024-25 rabi season on the strength of an increase in acreage and good weather. The nation has increased the area covered under wheat cultivation to 320 lakh hectares from 315.63 lakh hectares in the previous season.

The Union Agriculture Ministry has been hoping that the nation would experience bumper wheat yield this year, given favorable crop conditions and good climatic conditions. The crop is reported to be in good shape, with day-night temperatures normal, which has spurred growth.

India has yielded a record 1,132.92 lakh tonnes of wheat in 2023-24 last year. Since the area of sowing rose, the production during the current season is likely to be higher than estimated, thus raising the country's food grain stock even more.

The government has also played an active role in controlling the price of wheat and checking inflationary tendencies. The Department of Food and Public Distribution, on Thursday, redefined wholesalers', retailers', and processors' stock limit on wheat. It is for price control with sufficient availability in the market.

According to the new stock quotas, wholesalers are now able to stock only 250 tonnes of wheat, as opposed to the old 1,000 tonnes. Retailers are able to store up to a limit of 4 tonnes per outlet, which is less than the original 5 tonnes. All these revisions will hold until March 31, 2025.

Inventory at the large chain stores will be capped, and this will be in terms of the 4-metric-tonnes-per-outlet, which in this instance shall be an aggregate one based on their total number of depots and outlets. Wheat millers will be allowed to carry equivalent to 50% of their month's installed capacity, MIC, in the following months up to April 2025.

The government has made sure that all the entities that have wheat in stock shall register on a given portal and report their position of stock on every Friday. If any entity has been found to be violating the stocks limit or is in arrears to get registered on the portal, the government will prosecute it under the Essential Commodities Act, 1955.

The government move is one of sustained attempts to control food security, check hoarding, and protect against speculative trade that has the tendency to lead to price volatility. The restrictions will be in all the States and Union Territories to facilitate normal supply of wheat throughout the country.

The new stock limit rules are part of a chain of reforms brought in by the government. The initial order was Removal of Licensing Requirements, Stock Limits, and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2024. It was initially issued on June 24, 2024, and afterward it was amended in September and December 2024. All these measures are going to tackle the issue of wheat storage and transportation along with maintaining good prices and availability of this valuable commodity.

The move of the government is going to stabilize wheat prices and ensure the next harvest is put to good use without leading to price distortions in the market.

Main Points of the Story:

Wheat Area Coverage: Wheat area coverage under rabi season 2024-25 has been raised to 320 lakh hectares from 315.63 lakh hectares during last year.
Bumper Crop Ensuing: This season's crop of wheat is likely to be a record crop because of satisfactory sowing and weather conditions.
Revised Stock Limits: Stocks of wholesalers and retailers reduced by government in view of stabilizing the price of wheat.
Forced Registration: All entities that are to be stocked up with wheat will have to mandatorily register on the provided portal so as to keep their stocks under track for avoiding punitive action.
Government Price Control Programs: These programs are implemented to avoid price increases and hoarding, facilitating proper food security throughout the country.