India to Import Wheat After 6 years | 03 Jun 2024

Why in News?

India, the world's second-largest wheat producer, plans to begin wheat imports after a six-year gap to replenish depleted reserves and control rising prices, driven by three consecutive years of disappointing crops.

Key Points

  • India's wheat production has declined in the last 3 years due to unfavourable weather conditions, leading to a sharp drop in wheat output.
  • The government estimates this year's wheat crop to be 6.25% lower than the previous year's (2023) record production of 112 million metric tons.
  • The government's target for wheat procurement the year 2024 was 30-32 million metric tons, but it has managed to buy only 26.2 million tons so far.
  • Domestic wheat prices have stayed above the government's minimum support price (MSP) of 2,275 rupees per 100 kg and have been on the rise recently.
    • So, the government decided to remove the 40% import duty on wheat to allow private traders and flour millers to import wheat, primarily from Russia.

Wheat

  • This is the second most important cereal crop in India after rice and main food crop, in the north and north-western part of the country.
  • Wheat is a rabi crop that requires a cool growing season and bright sunshine at the time of ripening.
    • Success of the Green Revolution contributed to the growth of Rabi crops, especially wheat.
  • Top 3 Wheat Producers in World (2021): China, India and Russia.
  • Top 3 Wheat Producers in India (in 2021-22): Uttar Pradesh, Madhya Pradesh and Punjab
  • Government Initiatives: