News Capsule: Wheat output at risk from adverse weather; estimates may be revised lower: Somnath Chatterjee, ITC Limited, CNBC Awaaz
04-May-2026 09:51 AM
News Capsule: Wheat output at risk from adverse weather; estimates may be revised lower: Somnath Chatterjee, ITC Limited, CNBC Awaaz
★ According to ITC, one of the largest wheat buyers after the Food Corporation of India, uncertainty around wheat production has increased this year. Output may remain at last year’s level or slightly lower.
★ Earlier, production was expected to be higher by 5–7 million tonnes, but that outlook has now weakened.
★ A severe heatwave between late February and early March led to shrivelled grains and lower yields. This was followed by pre-harvest hailstorms, causing crop lodging and deterioration in quality.
★ As a result, there has been loss of grain lustre, higher broken percentage, and an overall dip in output.
★ The Food Corporation of India has relaxed procurement norms, allowing farmers to sell even quality-affected wheat at MSP.
Looking ahead:
★ El Niño risk could impact the next crop
★ Fertiliser supply constraints and high input costs remain concerns
★ Reservoir levels and irrigation availability will be critical
★ Overall, due to weather risks and cost pressures, wheat supply is likely to remain tight in the near term, which could keep market prices firm.