Wheat Growers Face Falling Prices, Fear Further Declines in Deregulated Market
April 12, 2025
Wheat Growers Face Falling Prices, Fear Further Declines in Deregulated Market
By Right News Staff
April 13, 2025
Wheat farmers across major grain-producing regions are sounding the alarm as market prices continue to tumble, putting their livelihoods under increasing pressure. With government support mechanisms loosening in recent years, growers now fear that a fully deregulated market could worsen the crisis.
According to data from agricultural trading boards, wheat prices have fallen nearly 18% since the start of the year, reaching their lowest levels in over five years. For many small and medium-sized farms, the decline has pushed revenues below break-even points, sparking concern not just over profits but survival.
“We’re not even covering our costs right now,” said Rajiv Menon, a wheat farmer in Madhya Pradesh, India’s wheat belt. “Input prices—seeds, fertilizer, diesel—have all gone up. But the price we get for our crop is going down. This is not sustainable.”
Experts attribute the sharp price drop to a combination of factors: a global oversupply, reduced export demand from traditional markets, and most recently, changes in agricultural policy that have limited state intervention in price stabilization.
“In the past, minimum support prices (MSP) acted as a safety net. Farmers had a guaranteed price, which protected them against market volatility,” said Dr. Anita Kaul, an agricultural economist at the Indian Council for Agricultural Research (ICAR). “But with deregulation, many of those protections are being phased out, and the market is dictating prices more aggressively.”
The shift toward a deregulated agricultural market began gaining traction during the past decade, driven by policy reforms aimed at enhancing efficiency and attracting private investment. Supporters argue that such moves can modernize the sector, improve supply chains, and ultimately benefit farmers through better market access and competitiveness.
However, critics say the transition has left many farmers exposed.
“Large agribusinesses can afford to play the market game. But smallholders don’t have that luxury,” said Subhash Goyal, spokesperson for the Bharatiya Kisan Union. “Without a floor price, there’s no guarantee they’ll recover their input costs. That’s a recipe for rural distress.”
The impact is being felt across rural India. In Punjab, Haryana, and parts of Uttar Pradesh—states historically known for strong wheat yields—farmers have reported difficulty selling their crops at viable rates. Many procurement centers remain underutilized, and private buyers are negotiating hard, citing global price trends.
Internationally, too, wheat prices have come under pressure. Abundant harvests in Russia and Ukraine, despite the ongoing conflict, have increased global supply. Meanwhile, demand from major importers like Egypt and Indonesia has slowed, further depressing prices.
Some governments are exploring emergency interventions. In India, state-level officials have urged the central government to reintroduce selective procurement or bolster existing MSP programs. But so far, the policy direction remains uncertain.
“We understand the farmer’s pain,” said an official from the Ministry of Agriculture, speaking on condition of anonymity. “But the long-term goal remains market efficiency. That doesn’t mean abandoning support, but it does require new models that are fiscally and operationally sustainable.”
For now, farmers are calling for immediate relief. Many want temporary price supports, subsidized inputs, and protection from predatory trade practices.
“We’re not against reform,” Menon added. “But reform without safeguards just leaves us at the mercy of the market. If prices fall further, many of us won’t survive another season.”
As the rabi marketing season progresses, all eyes are on the government’s next move—and whether it will choose to intervene or stay the course on deregulation.
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