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Wheat is the largest produced grain on the earth and is staple food for people in almost all parts of the world. It is the second largest cereal grain consumed on earth.

World wheat production for 2008/09 is projected to 676.3 million tons.

Major wheat producing countries - EU-27, China, India, USA, Russia, Canada, and Australia. European Union contributed about 25 % of wheat followed by China (22%), India (16 %), USA (12%) and Russia (10%).

World exports of wheat account for around 18-20 per cent of world production and, six countries or groupings-Argentina (8.9%), EU (9.9%), Russia (11.3%), Australia (12.2%), Canada (13.2%) and the US (28.2%)-account for close to 85 per cent of world exports.

World wheat consumption is consistently growing with growth in population. The major consuming countries of wheat are EU, China, India, Russia, USA and Pakistan.

Major importing countries are European Union, China, Egypt, Japan, and Brazil. Other importing nations are Mexico, Indonesia, Algeria, Philippines, and Iraq.

India
  • India has the largest area in the world and only the third largest in production behind EU-27 and China.
  • In 2007-08 India harvested record 78.4 million tonnes (MT) wheat.
  • The area under Wheat is about 25 to 28 Million hac in last 5 years whereas the production increased from 65 to 78 Million tones.
  • Major producing states are Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Rajasthan and Bihar accounting for about 85 per cent of total cultivated area.
  • The wheat is transported from the producing states to the non-producing states like Andhra Pradesh, Karnataka, Tamilnadu, Maharashtra, Orissa and the other consuming states.
Seasonality: Wheat is grown exclusive winter crop (Rabi) in India mostly grown in northern parts as it requires cool temperatures for flowering and grain formation.
Production Season Planting Harvesting
Rabi Oct -Dec Mar - April
 
Important Markets in Major Wheat producing States:

S NO.

State

Trading Hubs

1. Utter Pradesh Shahjahanpur, Agra, Kanpur, Bareily, Lucknow, Varanasi, Gorakhpur, Powayan
2. Punjab Khanna, Ludhina, Malout, Sangrur, Jalandhar, Batala, Ferozpur, Amritsar
3. Haryana Karnal, Sirsa, Hisar, Panipat, Ambala, Kaithal
4. MP Indore, Moraina, Ujjain, Sihor, Itarsi, Hoshangabad, Harda, Trikamgarh
5. Rajasthan Ganganagar, Hanumangarh, Kota, Bundi.
 
Factors that Affects Wheat Prices
  • Temperature, rainfall and soil moisture in the cultivating areas
  • Changes in the minimum support prices (MSP) by the government
  • Availability of substitute products at cheaper rate may lead to weakness in demand.
  • Seasonal cycles: Price tends to be lower as harvesting progresses and produce starts coming into the market. At the time of sowing and before harvesting price tends to rise in view of tight supply situation.
  • Carryover stocks, consumption and the import-export policy also affect the wheat prices.