WHEAT

The grain of a cereal grass used in the form of flour for white bread, cakes, pastries, etc.; the plant which bears the edible grain in dense spikes.

There are over 30,000 varieties of this ubiquitous grain. Cultivated for over 6,000 years, wheat is second only to rice as a grain staple. Wheat contains more gluten than other cereals, making it an excellent choice for breadmaking.

Varieties of Wheat

The three principal types of wheat used in modern food production are:

• Triticum vulgare - it provides the bulk of the wheat used to produce flour for bread making and for cakes and biscuits (cookies).
• Triticum durum - Durum is the hardest of all wheats. Its density, combined with its high protein content and gluten strength, make durum the wheat of choice for producing premium pasta products
• Triticum compactum

India in World Wheat Industry

India is looking to a larger wheat production of 75 million tonnes this year compared to 72 million tonnes in 2004. Markfed is one of the largest wheat exporters in the country. In 2003-04, it had exported 2.65 million tonnes of wheat.

Country	Metric Ton
	1995	2000	2003
Argentina	9,542,315	16,146,620	14,530,000
Australia	16,504,000	22,108,000	24,900,000
Canada	24,989,400	26,519,200	23,552,000
France	30,880,000	37,353,400	30,582,000
Germany	17,763,000	21,621,548	19,296,100
India	65,767,400	76,368,896	65,129,300
Iran	11,227,540	8,087,756	12,900,000
Kazakhstan	6,490,000	9,073,500	11,518,500
Pakistan	17,002,400	21,078,600	19,210,200
Russia	30,118,660	34,455,488	34,062,260
Turkey	18,015,000	21,008,600	19,000,000
United Kingdom	14,312,000	16,704,000	14,288,000
United States of America	59,404,000	60,757,488	63,589,820

Factors Influencing Wheat Markets

• Crop size
• Crop conditions
• The level of surplus or shortfall
• Agricultural and economic policies in the country and abroad
• Worldwide demand for wheat
• Domestic flour milling needs
• The relative strength of the currancy

The basics of wheat economics

When supplies of a commodity are excessive, prices decline. When demand for the commodity increases, so does the price. Typically, companies invest from 5% to 7% of their gross revenues to product promotion.
Individually, wheat farmers have little impact on demand, but putting all the heads together can make a significant difference in product demand and market price. And that leads to the ultimate goal of the improved income for wheat producers.

World Wheat Supply and Disposition

	1997-98	1998-99	1999-00	2000-01	2001-02	2001-00	1997-01
(Million Tonnes)				Prelim.	Proj.	% Chg	Avg.
Beg Stocks	145.4	170.9	174.7	167.93	157.71	-6.1	163.33
Production	609.2	588.8	586.8	578.8	567.63	-1.9	586.25
TOTAL SUPPLY	754.6	759.7	761.5	746.73	725.34	-2.9	749.57
TOTAL USAGE	583.6	585.1	593.51	589.02	594.47	0.9	589.14
ENDING STOCKS	170.9	174.7	167.93	157.71	130.86	-17	160.42
Stocks/Use%	29.3	29.9	28.3	26.8	22	-17.8	27.2
Trade	104	101.93	112.39	102.81	106.25	3.3	105.48

Wheat Economics

Harvested wheat grain is classified according to grain properties for the purposes of the commodities market. Wheat buyers use the classifications to help determine which wheat to purchase as each class has special uses. Wheat producers determine which classes of wheat are the most profitable to cultivate with this system.

Wheat is widely cultivated as a cash crop because it produces a good yield per acre, grows well in a temperate climate even with a moderately short growing season, and yields a versatile, high-quality flour that is widely used in baking. Most breads are made with wheat flour, even many breads named for the other grains they contain, including most rye and oat breads. Many other popular foods are made from wheat flour as well, resulting in a large demand for the grain even in economies with a significant food surplus.

Indian Scenario

• India has the largest area in the world under wheat. However, in terms of production, we are only the third largest behind EU-25 and China.
  
  
• India produces about 65-75 million tons of wheat a year, which is about 35% of India's total food grain production of 210-212 million tons.
  
  
• Since wheat and rice are grown in separate seasons, they do not compete for area.
  
  
• The major wheat producing states of India are Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Rajasthan and Bihar. Which together account for around 93% of total production.
  
  
• Wheat is sown during November to January and harvested during March to April. The wheat-marketing season in India is assumed to begin from April every year.
  
  
• Indian wheat is largely soft/medium hard, medium protein, bread wheat. India also produces around 1.5 million tons of durum wheat, mostly in central and western India, which is not segregated and marketed separately.
  
  
• Government announces Minimum Support Prices (MSP), which is the minimum price at which procurement has to be carried.
  
  
• The total procurement of wheat by Government agencies ranges from 8 to 20 million tons, accounting for only 15-20% of the total production.
  
  
• The support price operation and the Public Distribution Systems (PDS) play a significant role in maintaining reasonable and stable food grain prices in the country for both the producers and consumers.
  
  
• India consumes around 70-72 million tons of wheat a year. Most domestic wheat consumption is in the form of homemade chapatis or rotis using custom milled atta, although usage of branded packaged atta marketed by large companies, is increasing in cities.
  
  
• There are around 200 large flourmills in India, with a milling capacity of around 15 million tons.
  
  
• India exported around 5 million tons subsidized by Govt in 2003-04, as a result of surplus stock. However, current Govt. policies are not in favour of exports. Southeast Asia and Gulf countries are major importers of Indian wheat.

Global Scenario

• The world wheat production in the recent years has been observed to be hovering between 560-580 million tons a year.
  
  
• The biggest cultivators of wheat are EU-25, China, India, America, Russia, Australia, Canada, Pakistan, Turkey and Argentina. India, EU-25, China, India and US, the four largest producers account for around 58% of the total global production.
  
  
• World wheat consumption is consistently growing with growth in population, as it is one of the major staple foods across the world. The major consuming countries of wheat are EU, China, India, Russia, USA and Pakistan.
  
  
• Around 16-19% of the world wheat production is traded annually between countries. The annual world trade in wheat is to the extent of 102-106 million tons. America, Australia, Canada, EU-25 and Argentina are the five largest exporters of wheat in the world.
  
  
• Major importing countries that tops in the figures are European Union, China, Egypt, Japan, Brazil and European Union. Other importing nations are Mexico, Indonesia, Algeria, Philippines, and Iraq. However the import amount varies year to year depending upon the domestic production.

Properties

Wheat is sweet, cool, cures excessive humor of wind and bile in the body, rich in proteins, causes phlegm, increases virility, gives strength, is very nutritious and makes the complexion of the body fair.

Uses

• Wheat is one of the staple food used most commonly in India.
  
  
• The bread made of wheat flour is very relishing, nourishing, strength giving and very good for people having very high appetite.It cures flatulation and causes the formation of phlegm. Wheat flour cures constipation, ley loosening up the hardened stool.
  
  
• 50 gms of wheat soaked in 465 grams of water for the whole night. In the morning it is mashed up in that same water and after filtering that same water and drinking it after mixing some sugar into it, cures the emanation of sperms through urine within a week.
  
  
• Drinking the solution of wheat dissolved in milk and mixed with some sugar cured the bleeding of the nose.
  
  
• Taking two or three spoonful grains of wheat during the time of having food, increases the resistance power of the body, it also cures constipation and is very beneficial for cancer patients.