Rabi sowing remains low, wheat may accelerate

Hike in MSP lures more farmers to wheat cultivation

Though the overall rabi sowing remained subdued in the early weeks of the season, the sowing of wheat is expected to accelerate in the coming weeks, the Centre for Monitoring Indian Economy (CMIE), said in its monthly review of the Indian economy.

As per the data, nearly 30.6 million hectares were sown as of November 23, against 34.5 million hectares a year ago. Wheat, gram and rapeseed-mustard are the major rabi crops.

They account for 67 per cent of the normal area sown in the rabi season. Sowing of these crops was lagging behind in the current season compared with the last season, CMIE said.

Wheat acreage reported till November 23 was 8 million hectares, down by 23 per cent over 10.45 million hectares sown a year ago. Wheat accounts for 45 per cent of normal sown area.

Its sowing progress was poor in all the major producing states, except in Punjab. The acreage in Uttar Pradesh was down to 1.3 million hectares till November 23 as against 2..2 million hectares a year ago. In Madhya Pradesh, area sown was 1.3 million hectares as against 2.1 million hectares.

In spite of the slow progress of sowing in the initial weeks, CMIE expects wheat sowing to accelerate in the coming week. Overall acreage is expected to remain higher than in the previous year. Consequently, wheat production is estimated to reach 75.6 million tonnes during 2007-08, higher than the 74.9 million tonnes in the preceding year, CMIE said.

There is no reason for the farmers to cultivate less wheat in the current rabi season. Wheat has become a remunerative crop on account of hike in minimum support prices by the government and rise in prices in the open market, CMIE said.

Government hiked minimum support prices for wheat by Rs 150 a quintal to Rs 1,000 a quintal from Rs 850 a quintal in the previous year. In addition to this, international wheat scenario is not satisfactory.

World wheat production is expected to remain lower than in the previous year. As a result, wheat prices in the international markets have gone up and are likely to remain firm in the current year, CMIE stated.

With the hike in 2007-08, average increase in MSP of wheat during 2004-05 to 2007-08 works out to 12 per cent a year, while the overall wholesale price index saw an average rise of 5.4 per cent a year.

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POOR SHOW

Rabi sowing as of Nov 23 declined to 30.6 mn hectares from 34.5 mn hectares a year ago

Wheat, gram and rapeseed-mustard account for 67 per cent of the normal area sown in the season

Wheat accounts for 45 per cent of normal sown area

Wheat acreage reported till Nov 23 was 8 mn hectares, down by 23 per cent