India can export upto 10 MT wheat annually by avoiding huge spoilage: Study.

New Delhi: India can export upto 10 million tons (MT) of wheat each year if the country is able to maintain production level of about 95 MT as exports is the only ideal option to avoid massive spoilage/wastage of about 40 per cent grains worth about Rs 50,000 crore owing to dearth of adequate scientific wheat storage together with slow pace of creating fresh storage space, noted a just-concluded ASSOCHAM study on wheat production in India.

“A long-term and stable wheat export policy is the need of the hour as it would go a long way in developing dedicated clientele in the global wheat market thereby helping India in earning much needed foreign exchange, thus issues vis-à-vis storage, domestic consumption, food security needs, population growth and others must be analysed and a pragmatic view should be taken in this regard,” noted the study titled ‘Wheat Economy of India,’ conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Afghanistan, Bangladesh, Indonesia, Korea (RP), Malaysia, Nepal, Oman, Philippines, Qatar, Saudi Arabia, Thailand, UAE, Yemen, Vietnam and African Countries like Djibouti, Ethiopia, Sudan, Tanzania and others are major importers of wheat from India.

“India should formulate a strategy to corner about 10 per cent share in the 100 MT global wheat market provided right steps are taken to tap this potential in the long run,” said Mr D.S. Rawat, national secretary general of ASSOCHAM while releasing the chamber’s study here today.

“The total production of wheat which accounts for about 35 per cent of India’s foodgrains’ basket may reach 100 MT by 2016-17 from the level of about 93.5 MT as of 2012-13,” noted the ASSOCHAM study. “However, unless concerted efforts are made to fight the vagaries of weather, risk of pests and diseases and poor productivity in most wheat producing states, it is difficult to achieve higher wheat production targets on a consistent basis.”

Growing popularity and demand of bakery, value added and ready-to-eat wheat products is also driving wheat production in India.

Wheat procurement by government agencies may also cross the official target of 34.12 MT as the quality of wheat in the current year is affected due to hailstorm and unseasonal rains and farmers prefer to unload bad quality wheat early, as such the government might end up procuring higher, highlighted the study.

Wheat procurement is largely restricted only to Haryana and Punjab as other states despite having significant share in wheat production have poor share in wheat procurement owing to inadequate infrastructure and lower marketable surplus.

Though, with over 90 million tons (MT) of annual wheat production India ranks second only after China in terms of global wheat production of about 700 MT grown on over 240 million hectares, however in terms of yield (3 MT/ha) India is far behind leading Western European countries like – France, Germany, UK (each with about 7 MT/ha), China (5 MT/ha). “Considering the growing population and needs for country’s food security there is a compelling need to increase the yields significantly by focusing on high yielding varieties suitable for various geographical and climatic regions.”

In its study, ASSOCHAM has suggested that there is a need to shift from the present ad-hoc policy and adopt a logical approach to encourage private sector participation in the trade. Besides, steps should also be taken to liquidate stocks.

“Timely crop advisory should be extended to all wheat farmers and expert guidance should be provided during critical stages of growth and close to harvest as climatic variations such as early warming up, severe winter, hailstorm and unseasonal rains during maturity result in damage to standing crop year-after-year and also affect yields besides quality,” the study suggested. “Large volumes of damaged/spoiled wheat grains lying in the open and in warehouses should be sold as feed wheat or for production of grain based alcohol as it would create much needed space for fresh and good cargo and reduce the cost of maintaining such stocks.”

An innovative crop rotation policy with intercropping is the need of the hour and scientists along with policymakers should look for a viable solution in this regard, suggested the ASSOCHAM study. “A time bound study should be undertaken to formulate an effective wheat policy to address the needs of all stakeholders of wheat industry ranging from primary producer to all sections of consumers and exporters.”

With a share of over 32 per cent, Uttar Pradesh (UP) has emerged on top in terms of wheat production in India followed by Punjab (18 per cent), MP (14 per cent), Haryana (!2 per cent) and Rajasthan (10 per cent), noted the ASSOCHAM study. “Madhya Pradesh (MP), Rajasthan, UP and Bihar have significant potential to grow more of good quality wheat, which can fetch a premium in export markets for higher price realisation and creating niche markets abroad. Besides, wheat varieties which have good demand abroad should be identified and promoted through concerted marketing promotion.”

Source : orissadiary.com