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

Seniors-documentary-Parents

Stricken by her mom’s death, Sikh filmmaker learns ‘to keep moving forward’

LARISSA CAHUTE VANCOUVER DESI When Vancouver filmmaker Baljit Sangra’s mother suddenly died after being struck by a car, Sangra was so devastated that she wanted…
Continue Reading »

Parliament hill

Dosanjh: We must criminalize glorification, encouragement of terrorism

UJJAL DOSANJH SPECIAL TO VANCOUVER DESI Canada is no stranger to terrorism. Nonetheless what has happened in the heart of our capital on the heels…
Continue Reading »

Royal Wedding

Aga Khan’s eldest son Prince Rahim and his wife Kendra Salwa Spears expecting their first child

VANCOUVER DESI The Aga Khan’s eldest son Prince Rahim and his wife Princess Salwa (Kendra Salwa Spears) are expecting their first child, the spiritual leader…
Continue Reading »

LOCAL NEWS

Seniors-documentary-Parents

Stricken by her mom’s death, Sikh filmmaker learns ‘to keep moving forward’

LARISSA CAHUTE VANCOUVER DESI When Vancouver filmmaker Baljit Sangra’s mother suddenly died after being struck by a car, Sangra was so devastated that she wanted…
Continue Reading »

CIVIC ELECTIONS

Surrey mayoral candidates share city visions at first meeting

AMY REID VANCOUVER DESI SURREY — Surrey mayoral candidates met for the city’s first all-candidates meeting Thursday night at SFU. Six of the seven candidates…
Continue Reading »

OTTAWA

Surrey MP Nina Grewal’s account of the shootout in Ottawa

NINA GREWAL SPECIAL TO IANS  When Canadian Prime Minister Stephen Harper was speaking at about 9.30 a.m. Wednesday in a caucus room of parliament, we…
Continue Reading »

Don't Miss...

student dead

Two dead, including gunman, in school shooting north of Seattle

DOUG ESSER THE ASSOCIATED PRESS MARYSVILLE, Wash. — A student opened fire in a high school cafeteria north of Seattle on Friday, killing at least…
Continue Reading »

attack on Parliament Hill

Ottawa shooter kicked out of Burnaby mosque two years ago

Zehaf-Bibeau was asked to leave the mosque, because he had “gotten a hold of keys and stuff from the mosque, and when he got out…
Continue Reading »

labour laws violation

U.S. company penalized for mistreatment of Indian employees working 122 hours in a week

MICHAEL LIEDTKE THE ASSOCIATED PRESS SAN FRANCISCO – A Silicon Valley company is paying more than $43,000 in back wages and penalties after labour regulators…
Continue Reading »

DESI-SOCCER

Surrey soccer captain played the U-18 national club championship using only one foot

KYLE BENNING SURREY NOW SOUTH SURREY – Kyle Sohi’s perseverance and performance in the 2014 Sport Chek National Club Championships U-18 Cup Final might go…
Continue Reading »

SURREY-FIELD HOCKEY

Barinder Rasode announces plan to develop field hockey pitch in Surrey

Third field at Tamanawis Park would cost approximately $3 million KYLE BENNING SURREY NOW NEWTON – Barinder Rasode and the One Surrey team were at…
Continue Reading »


Bollywood Latest

Stan Lee-Bollywood

Stan Lee plans Bollywood film on his first Indian superhero

VANCOUVER DESI Stan Lee, the legendary ‘Spiderman’ creator, is reportedly planning his Bollywood entry with a film on his Indian superhero character ‘Chakra: the Invincible’….
Continue Reading »

KANGANA RANAUT

Even my parents think I am weird, says Bollywood ‘Queen’ Kangana Ranaut

HINDUSTAN TIMES Kangana Ranaut has always made unconventional choices, be it her movies or the way she dresses. And the actor says she’s happy the…
Continue Reading »

Happy New Year-Bollywood

Happy New Year: Mandatory ‘formula’ and all those old Bollywood references

HINDUSTAN TIMES Film: Happy New Year Cast: Shah Rukh Khan, Deepika Padukone, Abhishek Bachchan, Boman Irani, Sonu Sood, Vivaan Shah, Jackie Shroff Director: Farah Khan…
Continue Reading »