Wheat output might drop 4-5% due to unseasonal rain

Centre to relax procurement norms in affected states; govt might have to dig into reserves to meet demand

India’s wheat production in the 2015-16 crop marketing season that started from April might fall four to five  per cent from the initial estimate of 95.76 million tonnes (mt) because of unseasonal rain, which also means the country might have to dig into its reserves to meet domestic consumption.

"According to initial reports, received from various states after unseasonal rains... the estimates show wheat production could drop by four to five per cent this year," Agriculture Minister Radha Mohan Singh said, while addressing a conference on kharif crops here.

He also said, as of now, standing rabi crop in 11.3-11.4 million hectares, which also included vegetable and fruit farms, has been damaged. Last month, the Centre had estimated the losses to be in about 10.6 million hectares.

“A final figure on the actual impact on rabi production will be available only by the end of this month,” a senior official said.

Assuming a drop in production of five per cent, wheat output this year could be somewhere around 91 mt, while an estimate from the food ministry shows that consumption is expected to be somewhere around 93.85 mt, which also includes wheat used as feed meal. This means that the balance has to be met from the reserves. The wheat stock in the central pool was around 19.52 mt as of March 1 this year, almost 179 per cent more than required.

In total, cereals have been sown in around 61 million hectares this rabi season, while fruit and vegetables cultivated in another one to three million hectares.

This means that as per the latest estimate, production in around 16-18 per cent of the total sown area has been impacted in the recent rains.

Singh said states have adequate funds under State Disaster Response Fund (SDRF) to provide financial assistance to farmers affected by the unseasonal rains.

The government has also set up an informal group of ministers, headed by Home Minister Rajnath Singh, to look into the issue of raising cap of financial assistance given to farmers whose crops have been affected by unseasonal rains and other natural calamities.

Singh further said the Centre was ready to give additional funds to states once they utilise those available with them under SDRF.

The government provides support to states under SDRF and National Disaster Relief Fund for losses to crops due to natural calamities.

Softer norms
To ensure that the shortfall in production does not lead to low supplies, the department of food has decided to relax its quality norms for procurement of wheat in worst affected states of Haryana, Rajasthan and Uttar Pradesh.

For 2015-16, Food Corporation of India has decided that it won’t accept any wheat for purchase which has more than six per cent broken content.

However, the same quality norm has been relaxed by Madhya Pradesh and Gujarat after the recent rains led to discoloration of the standing crop and they have started accepting wheat up to 10 per cent broken content. The same, officials said could be replicated nationwide.

“I have directed my department to ensure maximum relaxation of procurement norms in the interest of farmers,” said Food Minister Ramvilas Paswan.

He said the Centre has asked Haryana, Rajasthan and Uttar Pradesh governments to test samples of wheat jointly with FCI immediately on its arrival so that appropriate relaxation in quality norms can be considered for the procurement.