The Hindu Business Line : Wheat prices recover in M.P.

"Wheat prices were below the minimum support price of Rs 630 per quintal at the beginning of this month on heavy arrivals. Things are looking up now," said Mr Sunil Mukhati, a farmer.

Currently, wheat is quoted at Rs 650-675 a quintal. On the other hand, the premium sharbati wheat is ruling at Rs 800-890 a quintal.

Usually, even ordinary wheat grown in Madhya Pradesh fetches rates above the minimum support price. "But arrivals from all parts of the State have flooded the market," Mr Mukhati said.

A Madhya Pradesh Government official said in view of the price situation, the State had begun procurement for the Central pool at the early stages of the arrival. "A hue and cry was raised due to the lower prices since Madhya Pradesh wheat usually sells well over the minimum support price fixed by the Centre. Therefore, we began our procurement well in time," he said.

The minimum support price for wheat this year is Rs 630 a quintal. Last year, the support price was Rs 620 quintal but the Government also offered a special drought relief of Rs 10 a quintal.

"We have had an excellent crop. The hot weather has not affected wheat much," said Dr G.S. Kaushal, Director, Agriculture, Madhya Pradesh.

Wheat was cultivated in over 45 lakh hectares this year, thanks to good soil moisture carried over from the bountiful rains received from the southwest monsoon. This year's production is against 66 lakh tonnes last year.

However, Mr Mukhati said that though production was good, productivity for progressive growers had been hit by the unusual hot weather.

"We can easily get four to five tonnes of wheat per hectare. But due to the hot weather, this has come down to three to four tonnes," he said.

The average productivity level in the State is around 1.75 tonnes per hectare.

Both Dr Kaushal and Mr Mukhati said the quality of wheat was unaffected by the weather, unlike in other northern parts of the country such as Punjab and Haryana.

"Our wheat is in demand from exporters because of our quality," Dr Kaushal said.

Madhya Pradesh wheat is considered to be of superior variety and it commands a premium over wheat from other parts of the country. The soil in the State is said to play a key role in the quality.

"One worrying factor is that this time, the prices are a little low," Mr Mukhati said.

With arrivals almost over in Punjab and Haryana, traders expect the prices in Madhya Pradesh to harden in the next couple of weeks.