How Russia-Ukraine War Is Impacting Punjab's Wheat Sales
NDTV
Punjab wheat purchases: Russia and Ukraine, locked in a war that has dragged on for over a month, are the biggest wheat exporters in the international market
Private players in the farm sector have bought one of the biggest amounts of wheat from Punjab this year, breaking a record, in what could be seen as an effect of the Russian invasion of Ukraine. These two nations, locked in a war that has dragged on for over a month, are the biggest wheat exporters in the international market. And this is where Punjab comes in given the current situation, say experts.
Punjab is far from any port, and so crop purchases by multinational food export firms are seen as logistically difficult. Yet, this hasn't stopped them from paying more than the minimum support price, or MSP, to Punjab's wheat farmers due to the war in Ukraine.
Wheat purchases by private players reached nearly 1 lakh tonnes within two weeks of the current rabi, or winter crop, 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 arrived at Punjab mandis 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.