This document analyzes the feasibility of wheat-based contracts in India. It summarizes wheat production data, varieties traded, and the existing wheat futures contract. Site visits to markets in major wheat producing states and discussions with traders provided insight into regional price variations and trade flows. The analysis found that mill quality wheat is most traded. A separate contract for the popular Lokwan variety with delivery centers in Madhya Pradesh and Karnataka could boost trading volumes. The existing contract could also be modified to include additional delivery centers and quality specifications.

1. FURTHER FEASIBILITY
STUDY OF WHEAT BASED
CONTRACTS

2. INDEX
• Executive summary
• Wheat Data
• Existing contract
• Objective
• Research methodology
• Analysis and Key findings
– Client interaction
– Mandi visit
– Tradeflow analysis
• Conclusion
• Bibliography

3. EXECUTIVE SUMMARY
 India is 2nd largest producer of wheat after china with total
production of around 90 MMT.
The project emphasizes on studying the existing contract,
exploring the data related to production, Consumption and
market of the commodity wheat.
There was interaction with traders across the states and visit to
mandi’s to sense the physical market and actual tradeflow across
the states.
The analysis was made based on the verities of wheat, their
prices in all the regions and the dispatch centers (major
consumption market).

4. WHEAT DATA
Major wheat producing states in India:
 Uttar Pradesh
 Punjab
 Haryana
 Rajasthan
 Madhya Pradesh
 Gujarat
Total production of wheat in India in 2014-2015 was 93 MMT
and UP(Approx 35%) is the leading producer followed by
Punjab(Approx 20%).

5. MAJOR VARIETIES
 Sharbati
 Lokwan
 Mill quality
 Malwa Raj/Malwa shakti
 Tukadi
 PD
 147
 4037,1544

6. BROAD CLASSIFICATION
Bread
(Triticum
Aestivum)
• It contribute around 95%
• Uttar Pradesh, Punjab, Haryana, Rajasthan, Bihar, West Bengal,
Assam, Parts of Madhya Pradesh, Himachal Pradesh, Jammu &
Kashmir
T.Durum
(Macaroni)
• It contribute around 4%
• Madhya Pradesh, Maharashtra, Gujarat, Southern Rajasthan and
few locations in Punjab
T.diccocum(
Emmer
Wheat)
• It contribute around 1%
• Karnataka, Maharastra & Tamil Nadu

7. EXISTING CONTRACT
Type of
Contract
Futures Contract
Name of
Commodity
Wheat
Ticker symbol WHEAT
Trading System NCDEX Trading System
Basis Ex- Warehouse Delhi exclusive of Sales Tax/VAT
Unit of trading 10 MT
Delivery unit 10 MT
Maximum
Order Size
500 MT
Quotation/base
value
Rs/Quintal
Tick size Rs. 1.00

8. OBJECTIVE
• The main objective of the project is Further Feasibility Study Of
Wheat Based Contracts in North & West.
• The project was to study the existing contract with all the details,
exploring the data related to production, consumption and market
for wheat so as to analyze the patterns of wheat trade flow.
• It is also to know the feasibility of new contracts or change in the
contract and addition of any new variety in the contract etc
• In India there is large number of traders in wheat commodity in
physical market, it is important to encourage their participation so
as to make the contract successful in terms of liquidity and volumes
to be traded.
• In a nutshell objective of the project is to get the better idea on
mandi trade flow, state wise trade flow, verities of wheat and rate
variation of respective variety across the states as well as traders’ &
processors’ approach towards the wheat commodity.

9. RESEARCH METHODOLOGY
• The research methodology used is based on studying the
existing data, the data collected is combination of primary
data and the secondary data available.
• The primary data was collected through survey done among
the clients, traders, food processing companies.
• The Mandi visits across the three states covering majorly
seven Mandis were helpful in data verification.
• The exploratory technique was used in the process and the
whole of the analysis is done based on the qualitative data
collected and made available through secondary sources.
• The conclusion was so far taken by analyzing the data and
some assumptions were made to get the proper result out of
the research done.

10. ANALYSIS & KEY FINDINGS
• Interaction with stakeholders including the traders, brokers
and food processors across the various regions.
• The project involved visit to various stakeholders in Delhi,
Madhya Pradesh and Rajasthan in various regions.
• The information about the verities and tradeflow in all the
state as well dispatching locations of each of the states were
identified.
• The information with respect to rates of each of the verities
was taken from all the stakeholder.
• The probable factors responsible for every price variation
across the states were explored for each of the verities.

11. COMPARISON
The excel sheet given below gives the
comparison of statewise varieties ,production
and rates.

12. CONCLUSION
.
• The mill quality is most traded variety across the states
visited in the research.
• The quality of this milling wheat varies from state to state and
region to region in any particular state.
• Lokwan is 2nd most traded variety in MP and Rajasthan .
• The South India (Tamilnadu,AP,Karnataka and Kerala) is the
major consumption market for wheat from all the states in
west and north
• A separate contract for lokwan wheat can be launched with
Kota as base centre and Indore,Banglore as additional delivery
centers with premium and discounts wherever applicable.

13. CONCLUSION
.
• The mill quality existing contract can be modified with respect
to additional delivery centre as Indore or Itarsi and Banglore
in south with consideration of quality parameters.
• Though the wheat is largest commodity in India but the
futures contract is not equivalently successful so volumes and
traders participation is required to generate more liquidity
which will lead to more volumes as a whole.

14. BIBILOGRAPHY
.
The bibliography mainly includes the secondary data collected through
various websites and the primary data is through direct interactions and
observations.
Following are the websites:
• http://listz.in/top-10-wheat-producing-states-in-
india.html#ixzz48E5UW6J6
• http://www.krishijagran.com/farm-data/farm-statistics/2014/11/State-
wise-Area-production-yield-crops-2011-12-and-2012-13/Area-Production-
and-Yield-of-Wheat-during-2011-12-and-2012-13
• http://agricoop.nic.in/Admin_Agricoop/Uploaded_File/Wheat.pdf
• http://farmer.gov.in/imagedefault/pestanddiseasescrops/wheat.pdf
• http://agmarknet.dac.gov.in/OtherPages/Commodity.aspx
• http://www.commoditiescontrol.com/eagritrader/commodityknowledge/
wheat/wheat1.html
• www.ncdex.com

15. Q&A