NEW DELHI (Commoditiescontrol) - Supply of wheat is likely to pick-up pace during advancing monsoon in Rajasthan, Madhya Pradesh and Uttar Pradesh. Most of the country’s farmers would want to clear their stock as soon as possible to avoid any loss caused during monsoon season, as they do not have modern storage facilities.
Quality of wheat can be affected easily during rainy season, especially when the produce is stored in conventional method. A lot of farmers do not have modern storage facilities, so they stock their produce in conventional manner. In such situation, moisture level in the stored produce increases, which deteriorates quality. Farmers would not take any chance and may start selling their stock at a faster pace.
A Kota-based trader Mr. Uttam Chand Jethwani shared with commoditiescontrol.com that supply of wheat has already increased in Rajasthan since the onset of monsoon. Mr. Jethwani adds that the supply may increase further once monsoon arrives in full-swing. According to him, supply has already increased to 55,000 bags in Hadoti region of Rajasthan. Daily arrivals have increased to around 1 lakh bags in the entire state, which earlier declined to 60,000 bags. He also reiterated that supply may rise further after proper distribution of monsoon.
However, another trader from Bhopal, Mr. Manohar Khandelwal said that this would may the last round of wheat supply after arrival of rains. Then on, wheat stock with the farmers will be exhausted. Currently, farmers are holding around 20-30 percent of their produce. They held their produce to get better returns during off-season. According to Mr. Khandelwal, wheat becomes a vulnerable commodity and gets damaged easily. Therefore, they will come forward to off-load their stock. Mr. Khandelwal said that it is a seasonal routine. Every year, farmers off-load their stock after onset of first rains. He said that supply in Madhya Pradesh will also increase after good rains.
Similar trend may be seen in Uttar Pradesh. After the arrival of first rains, farmers will sell their entire stock. They will hold small quantity of wheat just for their own consumption. On disruption of transportation facilities during rainy season, Mr. Jethwani explained that about 80-90 percent villages are connected by good road network. Secondly, nobody can expect regular showers for weeks, so they can bring their crop after rains.
As far as prices are concerned, higher arrivals may not lead to significant fall in prices due to ensuing festive demand during monsoon. Moreover, prices will be influenced by government’s sale policy.
(By Commoditiescontrol Bureau; +91-22-40015534)
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