India Elevates Wheat Purchase Price to Bolster Supply
India increased the domestic wheat purchase price by 6.6% to encourage farmers to grow more and stabilize supplies. The government's revision aims to balance returns with competing crops like rapeseed, amidst climatic advantages for wheat farming in northern and central regions.
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- India
India has announced an increase in the procurement price of wheat for the 2026 season, raising it by 160 rupees, approximately $1.80, which equates to a 6.6% hike. This decision aims to incentivize farmers to allocate more land for wheat cultivation and ensure robust supply levels in the world's second-largest wheat-producing nation.
Annually, India sets purchase prices for wheat and rice to support its vast food welfare program that benefits 800 million citizens. With wheat planting occurring in October and November and harvesting commencing in March, maintaining competitive pricing is crucial for farmers' engagement.
A recent trend has shown a shift toward rapeseed due to its superior returns, prompting the price hike in wheat to retain farmers' interest. Predominantly grown in northern, central, and northwestern regions of India, wheat cultivation benefits from the cooler climate present.
(With inputs from agencies.)
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