Wheat output is likely to be affected due to a possible heatwave leading to the production remaining below the estimates sending wheat prices to peak and the government putting restrictions on exports, reports Financia Eexpress.
India has witnessed the hottest February since 2021 and this has led to the predictions that the heat waves in March-May would increase, resulting in not full growth of wheat grain. The analysts expect that the wheat output would be around 98 MMT which is just 1.6% higher as compared to earlier estimates of 4%.
If the crop gets damaged by more than 10%, wheat prices would fluctuate. However, with the increase in the area under wheat cultivation would not lead to any kind of crisis in the country.
Earlier chief economic advisor of India V Anantha Nageswaran said, if the heatwave forecast is accurate there will be uncertainty in wheat production.
“The forecast of high temperatures and heat wave in March would negatively impact wheat crop. The effect will be seen in parts of Punjab, Haryana, UP and Madhya Pradesh where wheat cultivation is taken late. Hence we expect the wheat output to remain at 98 MMT,” said an analyst at Origo Commodities.