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India’s wheat acreage for the ongoing rabi season has declined by 15.5% to 41.3 lakh hectares as of November 8, compared to 48.87 lakh hectares a year ago. Despite lower sowing in Madhya Pradesh, northern states like Punjab, Haryana, and Uttar Pradesh reported an increase in wheat acreage. Wheat prices remain elevated, particularly in southern India, with record levels of Rs.34,000/tonne due to tight supply and limited availability in key states. With the government aiming for a record wheat production of 115 million tonnes for 2024-25, timely sowing and a predicted normal winter are critical. Trade demands for open market sales or imports continue as supply constraints push up prices.

Key Highlights

* Wheat acreage drops 15.5% to 41.3 lakh hectares by November 8.

* Madhya Pradesh reports significant delays, while Punjab and Haryana show gains.

* Wheat prices hit a record Rs.34,000/tonne in southern India.

* Tight supply and government reluctance to import drive price surge.

* Government aims for record wheat production of 115 million tonnes.

Wheat prices in India have surged, particularly in southern markets, reaching Rs.34,000 per tonne due to tight supply. In Delhi, prices stand at Rs.3,200 per quintal, reflecting the nationwide supply-demand mismatch. The weighted average price at APMC yards is Rs.2,811 per quintal, significantly above the minimum support price (MSP) of Rs.2,425/quintal. Trade sources attribute the spike to reduced availability across key producing states like Rajasthan and Madhya Pradesh.

The limited supply has been compounded by the government’s decision to refrain from resuming the Open Market Sale Scheme (OMSS) or permitting wheat imports at lower duties. As a result, flour mills face challenges sourcing wheat, particularly in non-traditional regions. Northern states such as Uttar Pradesh have become critical suppliers.

Wheat acreage as of November 8 stands at 41.3 lakh hectares, down 15.5% year-on-year, with Madhya Pradesh showing the largest decline. However, Punjab, Haryana, and Uttar Pradesh have reported gains, boosting hopes of achieving the government’s 115 million tonnes production target. Officials remain optimistic that sowing will pick up in November, aided by predictions of a normal winter.

Finally

Timely sowing and policy adjustments are vital to meet the wheat production target of 115 million tonnes, ensuring stable prices amid tight supply.

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