Processing of Cereal Foods, Wheat, Corn, Barely, Sorghum, Oat and Rice (Rye, Triticale, Millets, Flour, Bread, Cookies, Starches, Sorghum Malt, Sweet Corn, Lager Beer, Sour, Opaque Beer, Dry Milling, Cutting and Flaking, Rolling-Milling, Drying and Coolin

Saturday, April 29, 2017

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Wheat is a grass widely cultivated for its seed, a cereal grain which is a worldwide staple food. There are many species of wheat which together make up the genus Triticum the most widely grown is common wheat.

Rice is the seed of the grass species Oryza sativa (Asian rice) or Oryzaglaberrima (African rice). As a cereal grain, it is the most widely consumed staple food for a large part of the world's human population, especially in Asia. It is the agricultural commodity with the third-highest worldwide production, after sugarcane and maize.

Maize also known as corn, is a large grain plant first domesticated by indigenous peoples in Mexico about 10,000 years ago. The six major types of corn are dent corn, flint corn, pod corn, popcorn, flour corn, and sweet corn.

The oat (Avena sativa), sometimes called the common oat, is a species of cereal grain grown for its seed, which is known by the same name (usually in the plural, unlike other cereals and pseudocereals). While oats are suitable for human consumption as oatmeal and rolled oats, one of the most common uses is as livestock feed.

Barley a member of the grass family, is a major cereal grain grown in temperate climates globally. It was one of the first cultivated grains, particularly in Eurasia as early as 10,000 years ago. Barley has been used as animal fodder, as a source of fermentable material for beer and certain distilled beverages, and as a component of various health foods.

Sorghum is a genus of flowering plants in the grass family Poaceae. Seventeen of the twenty-five species are native to Australia, with the range of some extending to Africa, Asia, Mesoamerica, and certain islands in the Indian and Pacific Oceans.

A cereal is any grass cultivated for the edible components of its grain, composed of the endosperm, germ, and bran. Cereal grains are grown in greater quantities and provide more food energy worldwide than any other type of crop and are therefore staple crops.

Market Outlook

India’s wheat production for 2016-17 is forecast at 93.5 million tonnes, up from 86.5 million the previous year.

Wheat production in 2017 to decline by 2.7 percent mostly on lower outputs in several major producing countries, in particular the US.

India's wheat production is forecast to hit a record high 96.64 million mt in current marketing season 2016-17 (April-March).

India’s MY 2016/17 wheat consumption (FSI) is forecast to recover to 87.5 MMT after declining in MY 2015/16 to feed the growing (about 1.6 percent per annum) population. MY 2015/16 consumption estimate is revised lower to 86 MMT due to tight domestic supplies, particularly open market wheat supplies and the likelihood of higher consumption of rice instead of wheat as staple food on price considerations. Despite relatively tight domestic supplies, the government is likely to continue sale of wheat at subsidized prices through public distribution system (PDS), but the sale of wheat to local millers through the Open Market Sales Scheme (OMSS) are likely to come down from last year’s level on relatively tight government stocks. Due to the steady demand from the dairy sector, MY 2016/17 wheat use for feed consumption and residual is forecast to recover to 4.5 MMT after declining to 4.2 MMT in MY 2015/16.

Wheat flour market in India is growing at whooping CAGR of almost 19% since past three years. If the growth trajectory remains the same, market may likely to touch the new height of more than Rs 7500 crore in current fiscal (2015-16) itself. In terms of volume. The wheat flour market in India was more than 2,200 thousand tons during last fiscal 2014-15, growing at healthy double digit CAGR of 15% over the past three years.

Wheat flour market is expected to reach $1.15 billion by 2020 at a CAGR of 9.2%.

The 2016 maize output is officially forecast to recover from last year’s reduced level by almost 20 percent to 25.9 million tonnes, mainly reflecting a large expansion in plantings and higher yields due to favourable weather conditions.

Indian maize exports are set to rise to 700,000 tonnes from 500,000.

Maize flour market is expected to increase from $315.8 million in 2015 to $444.0 million by 2020 at a CAGR of 7.1%, while maize flour will increase from $658.2 million in 2015 to $840.2 million by 2020 at a CAGR of 5.0%.

India’s rice production is expected to rise to 107.5 million tonnes in 2016-17 from 104.3 million the year before.

World rice utilization in 2016/17 is forecast at around 502.6 million tonnes, 1.3 percent more than in the previous year,

Sustained by a growing demand for direct human consumption.

Overall, food uses are expected to reach 405 million tonnes, resulting in an average per capita food intake of 54.6 kilos in

2016/17, slightly more than the previous year’s level.

World cereal production in 2016 is anticipated to fall slightly short of projected demand in 2016/17, which would bring global end-of-season inventories in 2017 somewhat below their near record 2016 level. Supply prospects improved in recent months, on larger than earlier projected stocks at the beginning of the 2016/17 marketing season and more buoyant expectations about 2016 production.

World cereal utilization in 2016/17 is currently put at nearly 2 546 million tonnes, or 0.9 percent above the 2015/16 estimate. The forecast is 3.5 million tonnes lower than reported in May, because global feed use of wheat was revised down. Total utilization of wheat is now foreseen to even decline by 0.1 percent in 2016/17.

The global oatmeal market was valued at around USD 2.00 billion in 2016 and is expected to reach approximately USD 2.50 billion by 2022, growing at a CAGR of around 4.0% between 2017 and 2022.

India’s total imports of grains are put at 3.4 million tonnes in 2016-17, up from 1.8 million the year before. Exports are put at 1.1 million tonnes, down from 1.4 million the year before. India’s imports of wheat are set to jump to 3 million tonnes, from just 400,000 the year before.

Total grains (wheat and coarse grains) production in 2016/17 is 4m t higher m/m (month-on-month) at 2,106m, up by 5% y/y (year-onyear) and the largest ever. While consumption is boosted as well, upgraded opening stocks.

India is an important producer of sorghum, with its 2016-17 crop forecast at 5.5 million tonnes, up from 4.4 million tonnes.

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