While it’s miles heartening to notice the report acreage said for primary rabi season plants together with wheat, pulses and oilseeds, there may be now a developing subject over the authorities’s potential to respond to the harvest in phrases of procurement and protecting the minimal aid price (MSP) or preventing farm-gate expenses from collapsing.
Wheat acreage has reached a brand new excessive of 34.5 million hectare (mha) in Madhya Pradesh which saw report procurement final season. The wheat manufacturing target indicated via the government is at 106.Five million tonnes (mt) for 2020-21. Subject to ordinary climate, the harvest is certain to exceed 100 mt. The authorities’s output estimate final yr changed into 107.6 mt, however exchange envisioned the crop size lower at 97-98 mt.

A similar scenario may rise up this season, too. The big wheat crop is positive to pose demanding situations for policymakers in phrases of procurement, storage and motion. Procurement of forty mt cannot be ruled out. The pulses tale is growing no exceptional. Area planted at 16.Five mha is a brand new high. Chana (gram or chickpea) has performed exceedingly properly with eleven.1 m ha, followed at a distance with the aid of masur (lentil) with 1.65 m ha and fieldpea 1.1 mha.

The production target for pulses this season is at 15.7 m t. On present day reckoning, pulses harvest this rabi season may also nicely exceed 13.Zero mt and possibly check 14.Zero m t.

Among oilseeds, rapeseed/mustard vicinity planted is a document 7.Four m ha. The prospect of the crop size touching nine.Zero m t is vibrant, even though alternate is now speaking approximately 10 m t which can be an exaggeration.

Price support
Record harvest of wheat, pulses and oilseeds is positive to throw charge help and logistics demanding situations. For instance, wheat spot fees are already properly under the MSP of ₹1,975/quintal in some mandis. Similarly, at ₹4,500-four,seven-hundred/quintal of chana/gram is ruling beneath final season’s MSP of ₹4,875. For the imminent harvest, chana MSP is constant at ₹five,100/quintal. With heavy arrivals there may be risk of a fee fall apart toward ₹4,000.

Oilseed costs are presently supported by a price rally within the worldwide markets; however the rally is probable to peter out with the aid of March/April a good way to placed downward strain on Indian oilseeds and vegetable oils. The prospect of a massive rapeseed/mustard harvest (MSP ₹4,650) will exert downward rate stress as proven with the aid of the declining ahead charges in the derivatives trade.