NA MI CS OF C E R E A L S

THE DY
MA R KE T I N IN D I A
MB A- AB M 2 021 -20 23 )
RESONANCE (
 CONTENTS

• 1.INTRODUCTION AND IMPORTANCE OF CEREAL FOR NUTRITION - SNEHAL KUMARI AND VISHAL KUMAR
• 2.ROLE OF CEREAL MARKETING IN INDIA - SHIVA PRASANNA REDDY, SAI MAHANTH
• 3.RISKS AND CHALLENGES FACED BY CEREAL MARKET IN INDIA - BIDISHA DAS , SOMYA RANJAN NANDA
• 4.ACTIONS TO BE TAKEN TO ENHANCE THE CEREAL PROCUREMENT IN INDIA- ABHIJEET TRIPATHY, SAKTI SOURAV
MOHANTY
INTRODUCTION
• CEREAL = 'CEREALS' MEANING ‘GRAIN’
• STRUCTURE- LONG, THIN STALKS,
barley and rye,
such as wheat, rice, maize, sorghum millet,
FOODS PREPARED FROM THE CEREALS GRAINS ARE:

• 1. BAKED PRODUCTS
• 2. MILLED GRAIN PRODUCTS
• 3. BEVERAGES
• 4. WHOLE-GRAIN PRODUCTS
IMPORTANCE OF CEREALS

• CALORIES BURN
• GOOD FOR DIABETIC PATIENT
• NOT TO GET BORED OF SAME FOOD
• HIGH FIBRE CEREALS HELPS IN WEIGHT GAIN AND PREVENT FROM HEART DISEASE
ROLE OF CEREAL MARKET IN INDIA
• India is the world’s second largest producer of rice, wheat and other cereals.

• According to the first estimate for the year 2019-20 by ministry of agriculture of India, the production of major cereals like rice,
maize and bajra stood at 100.35 million tones, 19.89 million tones and 8.29 million tones respectively.

• India is not only the largest producer of cereal as well as largest exporter of cereal products in the world.

• India’s export of cereals stood at rs. 74,490.83 crore / 10,064.04 USD millions during the year 2020-21.

• Rice (including basmati and non basmati) occupy the major share in India's total cereals export with 87.6% during the same
period. Whereas, other cereals including wheat represent only 12.37 % share in total cereals exported from India during this
period.
Export of major cereals

Basmati rice

• Varieties:

Basmati 217,dehraduni basmati, Punjab basmati 1, pusa basmati 1, kasturi,Haryana basmati 1, Mahi sugandha.

• Areas of cultivation: J & K, himachal pradesh, Punjab, Haryana, Delhi, uttarakhand and western Uttar Pradesh.

• Exports

The country has exported 46,30,463.14 MT of basmati rice to the world for The worth of rs. 29,849.89 crores (or 4,018.71 US$ mill.)
During the year

2020-21.

• Major export destinations (2020-21) : Saudi Arab, Iran, Iraq, Yemen republic, u Arab
Non basmati rice

• In the world it has been reported that there are 10000 varieties of rice and out of which the maximum number are in India.

• India facts and figures :

The country has exported 1,30,95,130.21 MT of non basmati rice to the world for the worth of rs. 35,476.61 crores/4,799.91 USD millions during
the year 2020-21.

• Major export destinations (2020-21) : Benin, Nepal, Bangladesh , Senegal, Togo.

Wheat

• Varieties

VL-832, HS-365, HS240 ,WH-147, WH-542, PBW-343, wh-896(d), UP-2338..Etc

• Areas of cultivation:

UP, Punjab, Haryana, MP, Rajasthan, Bihar and Gujarat.

• India facts and figures :

the country has exported 20,88,487.66 MT of wheat to the world for the worth of rs. 4,037.60 crores/549.70USD millions during the year of 2020-
21.

• Major export destinations (2020-21) :Bangladesh , Nepal, u Arab , sri lanka , Yemen republic
Maize
• (USA) is the largest producer of maize contributes nearly 36% of the total production in the world.
• It accounts for around 10 per cent of total food grain production in India.
• It is a basic raw material as an ingredient to thousands of industrial products that includes starch, oil, protein, alcoholic beverages,
food sweeteners, pharmaceutical, cosmetic, film, textile, gum, package and paper industries etc.

• Areas of cultivation
Major wheat growing states in India are Karnataka, Madhya Pradesh, Bihar, Tamil Nadu, Telangana, Maharashtra and Andhra Pradesh.

• India’s production
Production of maize is estimated to be 21,810 thousand tones in 2015-16.

• Exports
The country has exported 28,79,202.93 MT of maize to the world for the worth of rs. 4,675.78 crores/ 634.85 USD millions in 2020-21.

• Major export destinations (2020-21)

Bangladesh , Vietnam soc. Rep., Nepal, Malaysia, Myanmar.
OTHER CEREALS – (jowar, bajra, ragi)

• In our country, the coarse cereals are mainly grown in poor agro climatic regions, particularly rain fed
areas of the country.

• These crops are grown in areas with high temperature and are called dryland crops because can be
grown in areas with 50-100 cm rainfall.

• India facts and figures

the country has exported 1,49,926.39 MT of given cereals to the world for the worth of rs. 450.95
crores / 60.87 USD millions during the year 2020-21.

• Major export destinations (2020-21)

U Arab, Nepal, Saudi Arab, U S A, Germany
RISKS AND CHALLENGES FACED BY
CEREAL MARKET IN INDIA
• After three consecutive years of above average supplies, current production prospects for the main grain-producing regions are
optimistic despite the prevailing risk of adverse weather events such as extreme heatwaves or devastating floods evoked by
climate change, affecting cereal markets in these regions.

• Historical deviations of crop yields from expected values are higher for wheat than for other commodities, and wheat yields in
Australia, Kazakhstan, the Russian federation and the Ukraine are particularly uncertain

• Cereal prices could be affected by a potential further slowdown of fast growing economies, such as china, and lower energy prices
caused by the uptake of new energy sources and new extraction technologies.

• Reinforcement of food security and the sustainability criteria in the reform and design of biofuel policies (i.e. The European union
or the united states) may also impact on the demand for cereals.

• Political unrest in either exporting countries (notably the Ukraine) or importing countries (in particular north Africa and the middle
east) could provoke market reactions that are not reflected in the projections
CHALLENGES
• The future developments of global wheat markets are particularly uncertain since exporting countries in south America face strong
price increases given their assumed exchange rate depreciations, which will stimulate production

• Stronger exchange rates would put downward pressure on dollar-denominated prices. Consequently, international prices could be
falling in dollar terms: while farmers in one country are looking at prices in their domestic currency, prices could be rising and could
stimulate production despite falling international prices

• Demand for wheat is concentrated in north Africa and the middle east, but further political instability in these regions could reduce
demand and depress international wheat prices.  
ACTIONS TO BE TAKEN TO ENHANCE CEREAL
PROCUREMENT IN INDIA

 Minimum support price(msp) is the assured price at which food grains

are procured from farmers by the govt. Agencies, but there have been a
demands to extend ,MSP to private trade as well as guarantee MSP to
farmers on all kinds of trade.

 The central govt. Notifies MSP on 23 crops but the public procurement
is largely limited to few food grains such as paddy , wheat and some
pulses so the procurement of other cereals need to be extended.

Percentage of crop production that was

procured at MSP 2020-21
The procurement of food grains is largely concentrated in a few
states. Three states (MP, Punjab, Haryana) producing 46% of the
wheat in the country account for 85% of its procurement. So
geographical diversification is to be made for the procurement of
cereals.

MSP is not mandatory for private traders or company, so law should 85% wheat procurement is from three states
be made in all states to prohibit cereal procurement below MSP. 2020-21

Regular increase in the msp of certain crops (wheat and rice) has
made a signal to opt. Farmers to those crops having assured
procurement system. So increase in MSP of other cereals can
encourage farmers to go for diversification of cropping and
procurement can be increased.

76% rice procured from six states 2020-21

Mechanism for increasing procurement
CENTRALIZED PROCUREMENT SYSTEM:-
1. The procured food grains and the stocks are supplied to FCI for storage purposes.
2. The surplus stocks gets also transferred from fci to the required states.
3. The cost of food grains procured by state agencies gets reimbursed soon after the delivery of stocks.
DECENTRALIZED PROCUREMENT SYSTEM:-
4. Introduced in 1997-98 by the government of India .
5. Goal is to enhance efficiency of procurement and to encourage local procurement to maximum extent.
6. Encouraging to farmers with help to achieve the real benefits of msp to local farmers.
7. In this state government directly purchases the cereals and distribute these food grains under nfsa scheme.
“Moreover we can say that supporting farmers with better farming techniques and optimum input supply can tend them
towards better production of cereals and timely procurement of all their cereals with MSP will strengthen them for more
production which will enhance the food security of the Nation”.
THANK
YOU