Russia-Ukraine War Impact: Punjab Wheat Sales Breaks 15-Year Record!

Russia and Ukraine war going on for more than a month has the biggest impact on the wheat sales nationally and internationally, as both these countries are the biggest wheat exporters in the international market.

Due to the ongoing war there, the wheat sales in Punjab have been impacted. Breaking all the records, the private players in the farm sector have bought one of the biggest amounts of wheat from Punjab this year, which is seen as an effect of the ongoing Russia-Ukraine war. 

These two countries are the biggest wheat exporters internationally. As Punjab is far away from any of the ports, the export of wheat internationally by the MNC food export firms is logistically a challenging task. But this hasn’t stopped them from paying more than the MSP or up to the MSP to the wheat farmers of Punjab due to the Russia-Ukraine war.

“The total purchase of wheat touched 17 lakh tonnes on April 13, which was the highest purchase on this date in the last 15 years. The Punjab government has paid Rs 828 crore into the bank accounts of farmers for wheat purchases and another round of Rs 871 crore has been cleared and will be credited into the accounts of farmers”, said a Punjab government official.

“An all-time record private purchase of 1 lakh tonnes of wheat has already happened, which is way higher than the corresponding purchases on the same date in earlier years. Private purchases are picking up with every passing day,” he further added.

As per the information, wheat purchases by the private players has reached nearly 1 lakh tonnes in just two weeks of the current rabi marketing season that opened on April 1. This accounted for 6 per cent of all wheat purchases in Punjab till Wednesday. A total of 20.6 lakh tonnes of wheat had arrived at mandis in Punjab till April 13.

The government agencies such as Pungrain, Punsup, Punjab State Warehousing Corporation, Markfed and the Food Corporation of India have bought 16.8 lakh tonnes. Of this, the private players have bought around 99,637 tonnes. The MSP is ₹2,015 per quintal, and they offered Rs 2,050 per quintal, which is more than the MSP. 

With this, the total purchases of wheat have also broken a 15-year record.

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