Rain And Hail May Set Wheat Prices Higher

India is a primarily an agrarian society even though, the economy is growing in all areas, the fact remains that agriculture is predominantly the major sector. Of late inflation has hit our economy very badly. Everyone is crying hoarsely about the growing prices. Extremely grim situation is enveloping the country.

There is a significant upward slide in the prices of the food grains. Higher food prices are making the common man the most conscious about inflation since he is feeling the pinch on the daily basis. The prices have hit an all time high; they are soaring through the ceiling.

To make the matters worse, the recent rain showers in Northern India though were welcomed as a relief from the heat, have escalated the prevailing crisis. The trickle of bad news may turn into a torrent. The crops that were ready for harvest have got damaged due to the rain & hail in the major wheat growing states. Even though statistics have shown the loss may be low as percentage of the country’s total wheat crop, but it could definitely put a significant psychological pressure on market prices when traders buy grain in the coming week.

Already the private traders are avoiding buying wheat from Punjab and Haryana, as they don’t want to purchase wet and luster-loss wheat. The latest report from the Directorate of Wheat Development (DWD) Ghaziabad shows that of late rain and hailstorm including high wind speed is definitely going to have an impact on the crop of major wheat producing states. The DWD have reported that the mission directors (National Food Securing Mission) have telephonically contacted to give some initial information about the repercussions of such rain.

It has been reported in Punjab that about 30,000 hectare, has been affected by hailstorm & it has caused 50% damage. The heavy wind has impaired about 2.5 lakhs hectares of wheat in all. On the whole, the total area affected is expected to be around 5-6%.

The worst affected areas are reported to be Jalandhar, Moga, Firozpur, Barnala and Taran Tarn. Haryana has shown no damage in the early sown crops; crops sown late have been affected and will increase the cost of the harvest. In UP, too, the agriculture department is expecting an impact of the rain on the standing/harvesting wheat crop. Places like Madhya Pradesh and Gujarat are counting their blessings as the harvest of the crops has already been done and the damage is not much comparatively. However, the quality of the grain may be affected.

The DWD is still awaiting the assessment of the entire effect due to the weather condition. FCI’s efforts to relax some of its buying specifications might help the farmers to sell their rain damaged harvest. But the fact remains that we are between the devil and the deep sea. The decline in the wheat productions has become a major problem globally because its impact leads to inflation and recession. The country needs to put in worthwhile endeavor to face the crisis in hand.