WHEAT: Cold weather makes for record harvest for seventh year straight

Published: January 8, 2013

Indian farm labourers use shovels to separate grains of wheat from the husk at a grain market on the outskirts of Amritsar in 2010. Photo: Narinder NanuAFP/Getty Images

Prabhudatta Mishra
BLOOMBERG NEWS

Wheat output in India, the world’s second-biggest producer, may reach a record for a seventh year as cold weather boosts yield prospects and record domestic prices spur planting, potentially boosting exports.

Better soil moisture and below-average temperatures in the main growing states of Punjab and Haryana in the past three weeks have been beneficial for the crop, said Indu Sharma, director at the state-owned Directorate of Wheat Research.

The harvest starting from April may climb from an all-time high of 93.9 million metric tons in 2011-2012, she said.

A bigger harvest may force the government to pare stockpiles through exports and vacate warehouses for the new crop, pressuring futures in Chicago which fell to a six-month low last week.

Rising supplies from India may help partly make up for the potential crop losses from the U.S. to Argentina and Australia to dry weather and cap global food costs tracked by the United Nations’ Food & Agriculture Organization.

“With elections scheduled for next year, the government will like to buy more of the new crop,” said Faiyaz Hudani, a senior analyst at Mumbai-based Kotak Commodity Services Ltd.

“It will have to liquidate the old crop to create space. When the purchase is going to be high, the government’s only option is to export.”

India may find it easier to export after drought reduced wheat output in Australia and Argentina, while Russia and China were set for smaller crops, Hudani said.

The country may ship more than 5 million tons in the year from April, he said. Exports have surged to 5.2 million tons, including 1.23 million tons from state stockpiles, since a ban on sales was scrapped in September 2011, according to data from India’s food ministry.

DECLINING INVENTORIES

Global production may drop 5.9 per cent to 655.11 million tons in the year ending May 31, according to the U.S. Department of Agriculture.

Inventories are declining for a third year and seen at the lowest level relative to consumption since 2008, when wheat prices surged to a record $13.495 a bushel. Futures advanced 19 per cent to $7.78 in 2012 on the Chicago Board of Trade, having risen as high as $9.4725 in July.

Prices in India jumped 29 percent last year after exports rose and the government increased the minimum price paid to farmers to a record.

Farmers planted wheat in 28.6 million hectares (70.7 million acres) as of Jan. 4 compared with 28.2 million hectares a year earlier, according to the farm ministry. Weather is set to remain favorable for crop development in the coming weeks, said L.S. Rathore, director general of the India Meteorological Department.

CROP CONDITION

“The wheat crop is likely to be good this year,” Rathore said in an interview. “There is no signal of abnormal weather prevailing until March. If the area goes up, the output will increase.”

The crop is in good conditions in the main producing states of Punjab, Haryana and western parts of Uttar Pradesh, according to the wheat directorate’s Sharma. The climate during the grain formation stage from the second half of February will be key to boosting yields, she said.

State inventories of wheat totalled 34.4 million tons as of Jan. 1, more than the minimum 11.2 million tons required to be held for emergencies and strategic reserves, according to the Food Corp. of India. The government bought 38.1 million tons of wheat from farmers in 2012-2013.

Tags: , , , ,




Featured

pioneers

Dharm Singh Gill changed the way Sikhs were regarded for wearing turbans at work

SPECIAL TO VANCOUVER DESI Little did Dharm Singh Gill realize that an act of heroism would change the way Sikhs were regarded for wearing their…
Continue Reading »

Jacqui Feldman shows off a recovering Sugar, her 13-year-old poodle that Terra Nova vet Dr. Javaid Chaudhry, rear, helped save after operating to remove a tumour. Feldman, who is battling cancer herself, fell on hard times and couldn’t afford to pay the $3,000-plus for Sugar’s procedure.  Alan Campbell/Richmond News

Richmond veterinarian steps up to save cancer sufferer’s dying dog

ALAN CAMPBELL RICHMOND NEWS Richmond’s Jacqui Feldman, who’s suffering from terminal cancer, is crediting a local veterinarian with saving her life. It was a few weeks ago…
Continue Reading »

An artist sketch of Yosef Jomo Gopaul, the man accused of killing hockey mom Julie Paskall. Felicity Don, Sketch

Man accused of killing Surrey hockey mom pleads guilty to lesser charge of manslaughter

JENNIFER SALTMAN VANCOUVER DESI SURREY, B.C. — A man has pleaded guilty to manslaughter in connection with the death of Surrey’s Julie Paskall, who was…
Continue Reading »

LOCAL NEWS

pioneers

Dharm Singh Gill changed the way Sikhs were regarded for wearing turbans at work

SPECIAL TO VANCOUVER DESI Little did Dharm Singh Gill realize that an act of heroism would change the way Sikhs were regarded for wearing their…
Continue Reading »

Jacqui Feldman shows off a recovering Sugar, her 13-year-old poodle that Terra Nova vet Dr. Javaid Chaudhry, rear, helped save after operating to remove a tumour. Feldman, who is battling cancer herself, fell on hard times and couldn’t afford to pay the $3,000-plus for Sugar’s procedure.  Alan Campbell/Richmond News

Richmond veterinarian steps up to save cancer sufferer’s dying dog

ALAN CAMPBELL RICHMOND NEWS Richmond’s Jacqui Feldman, who’s suffering from terminal cancer, is crediting a local veterinarian with saving her life. It was a few weeks ago…
Continue Reading »

An artist sketch of Yosef Jomo Gopaul, the man accused of killing hockey mom Julie Paskall. Felicity Don, Sketch

Man accused of killing Surrey hockey mom pleads guilty to lesser charge of manslaughter

JENNIFER SALTMAN VANCOUVER DESI SURREY, B.C. — A man has pleaded guilty to manslaughter in connection with the death of Surrey’s Julie Paskall, who was…
Continue Reading »

Don't Miss...

weight-loss

Do we need to exercise more or eat less?

JILL BARKER MONTREAL GAZETTE A battle is waging in the scientific journals between several prominent health and fitness experts. In one corner are physicians Aseem Malhotra,…
Continue Reading »

exam scores

Identical twins’ mark sheets almost as identical and the story of a courageous young achiever

HINDUSTAN TIMES AND VANCOUVER DESI They are identical twins and, interestingly, even their mark sheets look almost the same. Ranchi twins Aporupa and Anorupa Chattopadhyay …
Continue Reading »

India-pharma-under scanner

U.S. lawsuit puts generic drug imports from India under scanner

IANS Washington – A U.S. class action lawsuit accusing India’s Ranbaxy of large-scale deception on its generic drug applications puts a question mark on drug…
Continue Reading »

100 year journey

Apart from the overwhelming cold, Sucha Singh Bagri has fond memories of his first few days in B.C.

SPECIAL TO VANCOUVER DESI Sucha Singh Bagri arrived in Canada with his father Harnam Singh Bagri on Feb 2, 1935, on the Empress of Russia,…
Continue Reading »

swimsuits

Who wants to be a Princess? Beauty pageant contestants undergo rigorous training

VANCOUVER DESI Divas aspiring to become Indian Princesses are undergoing rigorous training before the grand finale of the beauty pageant in Mumbai. Indian princess pageant 2015 ◄…
Continue Reading »


Bollywood Latest

Items of clothing are displayed in room 331 of the Martinez Hotel, where Parisian fashion house Elie Saab provides sartorial services to celebrities attending the 68th international film festival, Cannes, southern France, Thursday, May 21, 2015. During the Cannes Film Festival, room 331 is radically transformed into a red carpet emergency room - where celebrities like Naomi Watts and Nicole Kidman can rush to if they pop out of a dress, or a zipper breaks. Vianney Le Caer/Invision/AP

‘Nip slips’ and broken zippers: Red carpet Emergency Room for Cannes wardrobe malfunctions always full of drama

THOMAS ADAMSON THE ASSOCIATED PRESS CANNES, France – For most of the year, room 331 of the Martinez Hotel is just your run-of-the mill luxury…
Continue Reading »

Bollywood

Bollywood beauty Aishwarya Rai doesn’t leave her daughter alone even for a night

HINDUSTAN TIMES Apart from walking the red carpet at Cannes Film Festival, Aishwarya Rai Bachchan is also screening footage from her upcoming film, Jazbaa. The first…
Continue Reading »

Bollywood

Photos: Aishwarya Rai an absolute stunner at Cannes 2015 (updated)

VANCOUVER DESI Former beauty queen Aishwarya Rai Bachchan has been a Cannes regular for over a decade now. But this year marks her comeback to the…
Continue Reading »