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India is set for another record wheat production this year, though some farmers in Madhya Pradesh have reported lower yield. An increase in the area under wheat by one million hectares, conducive weather, and new improved varieties have helped in the record production.
The higher production will leave India with higher stocks. The Centre has to look at ways to lower them bulging stocks which can happen by undertaking government-to-government exports.
The other aspect of the wheat production this season is that for the first time, farmers will get direct online payment for selling the foodgrain to the Food Corporation of India. This is seen as a move to bypass the arthiyas (Commission agents) in Punjab and Haryana. How will this move be measured? In this episode of Field Notes, T R Vivek and Subramani Ra Mancombu discuss the reasons behind this surplus wheat crop and whether a move by Punjab and Haryana government to directly credit MSP payments to farmers will work.
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