Domestic wheat production estimated to reach a new record level of 11 crore tonnes

24-Jan-2025 08:45 PM

It looks like the domestic wheat production in India is set to hit a new high, potentially reaching 11 crore tonnes in the 2024-25 Rabi season.

This is an optimistic estimate, given the favorable sowing figures and market conditions. In comparison, last year's production was estimated between 10 to 10.5 crore tonnes.

Rahul Chauhan, from I Grain India, suggests that the price of wheat could drop significantly when the new crop hits the market around March-April, as supply will increase and ease current market pressures.

He also pointed out that wheat acreage has increased to 320 lakh hectares, which is above last year’s levels and the long-term average.

Chauhan emphasized that the price drop will depend on multiple factors, including the weather during February-March.

If the weather is favorable and the record production is realized, the average price of wheat could fall to around Rs 2600 per quintal, with prices in Delhi potentially stabilizing at Rs 2800-2900 per quintal.

It seems like a balanced scenario: while production is expected to hit a record, wheat prices may ease after the new crop's arrival, but weather conditions could be a crucial factor in determining how much the prices will drop.