WHEAT MARKET OF INDIA

Indian Wheat Market

India is the third largest producer of the wheat crop. It has been successfully fulfilling its large domestic consumption demand in the past few years and has been exporting the surpluses to give the major exporters of the world a good competition. India produces an average of 75 million tons wheat each year but the production of this crop is generally fluctuating due to the uncertainty of the rainfall. The state of Uttar Pradesh leads the production in the country. For self-consumption purposes, the farmers retain around 48% of their production and hence it is not entered into the total production figures of the country.

Indian wheat is generally medium hard bread wheat. It is a staple food of this country. That is why almost all of the wheat produced is consumed. India holds the third position in the major wheat consumer’s list after European Union and China consuming around 72 million tons of wheat. The demand-supply flows with in the country are largely interfered by the government of the country so as to make sure that the grain supplies be stable and prices do not get affected.

With the introduction of the new technologies in the agricultural sector, there has been a constant increase in the productivity of wheat produced and hence there has been a growth in the surplus level of the country and consequently a rising trend in the wheat export. World market sees a dependable supplier of wheat in the form of India. The major exporters of the world namely US and Australia have lost their share in the world’s export with the coming of India in the exporting scenario. The export figures of India in 2003-04 were 5 million tons. The major importers of Indian wheat are the southeastern Asian countries and the gulf countries. India was an importer of wheat in the 90s as it the domestic demand was too high but now this situation has been overcame and overturned.

Market influencing factors:

• Weather conditions
• Government policies and regulations
• Prices fluctuations of the competitive and substitute products
• Season of harvesting and peak season
• Technological improvements
• Crop size
• World demand for wheat

Major trading center in India:

• Amritsar (Punjab)
• Moga (Punjab)
• Ludhiana (Punjab)
• Jalandhar (Punjab)
• Bhatinda (Punjab)
• Meerut (Uttar Pradesh)
• Hathras (Uttar Pradesh)
• Saharanpur (Uttar Pradesh)
• Barreily (Uttar Pradesh)

 Indian commodity exchanges :

 National Commodity & Derivatives Exchange ltd

Multi Commodity Exchange of India ltd

National Multi Commodity Exchange of India ltd 

Chamber Of Commerce, Hapur