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Senior Advisor

Wheat Article in India

Don't know what this might mean for impact on world wheat markets, likely minimal, yet the news is sad.  They need crop insurance.

 

http://www.cbsnews.com/news/india-farmers-commit-suicide-crops-destroyed-spring-rain-hailstorms/

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Senior Advisor

Re: Wheat Article in India

Believe it or not, the issue of suicides in India is worse that it appears. A wife of a dead husband in India is often considered dire. They can't remarry and she and her children are suddenly and completely destitute. The wife is part of the husband's family after mairrage and usually more or less a servant with little recourse. Without the husband she can be cast out, left unsupported or be little more than a slave. The children are often at risk in severe poverty with little or no help from the other villagers. They will usually not interfere in the situation of another family.

 

For each farmer's suicide there are usually multiple casualties.

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Veteran Advisor

Re: Wheat Article in India

interesting read

 

first, most of the wheat in inda has been lost ??

 

anyone at usda or cme read that ?

 

 

secondly the farmers must barrow money to plant crops......sound fimular ?

 

no croop insurance ?   ah anyone notice what the proposal is, to do away with the cost share

on crop insurance, so basicly your premium will double......so will there be crop insurance ???

 

farmers comitting sucide ?

 

from the way things are going, drout, low crop price, bad economy, doing away with crop insurance.

 

might  look into being a silent partner in a couple of funeral homes.

 

 

funny eagleeye didn't catch the story.

 

 

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Senior Advisor

Re: Wheat Article in India

It would be hard to compare the Indian wheat scene to our situation. A BTO in India would be 20 acres. Most farmers, mainly tenant, are a few acres or less. Government or bank financing is inadequate so loan sharks are an important financing sector. 600-800 million people are involved in agriculture.

 

There are advantages also. Government purchases of wheat and other grains are set above world prices and in addition there are tariffgs against outside sources. Fertilizer is subsidized and electricity for pumping and irrigation is generally free. Most grain is irrigated. Most harvesting is by hand with a few exceptional areas. Labor is cheap and migrant workers from truly poverty stricken states are available. The problem with maintaining high wheat price is the inability to export w/o subsidies to match world prices.

 

I've been to some of the best wheat growing areas and they have good crops though lacking in technology. Most areas have crops in the ground year around. Wheat is for the winter cycle in the north. They're harvesting now. India is the # 2 global producer of wheat, after China.

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Senior Advisor

Re: Wheat Article in India

Per article below, on Jan 1, India had large wheat stocks on hand --

 

http://economictimes.indiatimes.com/news/economy/agriculture/indias-january-1-wheat-stocks-three-tim...

 

However, I thought I read somewhere that much of India's wheat stocks are stored outside in piles (?)

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Senior Advisor

Re: Wheat Article in India

India does have strategic stockpiles of grain, including wheat, for food security reasons. Much like China in some ways. It has even larger stockpiles of rice (which uses a LOT of storage space) which creates huge concerns for SE Asian rice producers.

 

Burt the article you posted misses some important issues. Since the end of the year wheat prices have declined and that means to export means the Indian government has to approve large subsidies to get exports down to world prices (which violates WTO agreements and blows domestic budgets) - and for wheat many markets feel is inferior in quality to other sources. Besides, the food for poor program covers @ 800 million people, so 25 MT of wheat might not be out of line considering there were 4 months to go in the crop year.

 

With the apparently massive losses from storms this year the government declared a moratorium on exports, so the policy of food security could be said to be worthwhile. We'll see as time goes on. This isn't the first time this scenario has happened even if it's a little different circumstances.

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