Material Insights · Understanding the Material World

Wheat: Extraction

Why most wheat sleeps under snow before harvest

What this tab covers How it is mined, drilled or grown, and processed into a tradeable form: the main methods compared, their unit economics, by-products, and the companies that do this work globally and in India.

Wheat was first cultivated in the Fertile Crescent more than 10,000 years ago (Geman, pdf p. 161). Winter wheat is sown in autumn, lies dormant under snow and is cut in early summer; about three-quarters of US wheat is this type (Geman, pdf p. 163). Spring wheat suits colder northern plains in Canada, the Dakotas and Siberia. Classes matter: hard red wheats make bread, soft wheats make cakes and noodles, and durum makes pasta. Post-war high-yield varieties bred under Norman Borlaug spread worldwide in the 1960s (Morgan, pdf p. 331). Milling separates flour from bran and germ, which go to feed.

Wheat grows from the tropics' cool season to the edge of the boreal forest, so farming systems vary widely. The big split is water. Irrigated wheat in India's Indo-Gangetic plain, China's North China Plain and Egypt gives steady, fairly high yields on small farms. Rainfed wheat on huge mechanised farms in Russia, Kazakhstan, Canada, Australia, Argentina and the US Plains gives low yields per hectare but cheap grain and most exports. Western Europe gets the highest rainfed yields from long, mild seasons and heavy fertiliser use. Every route ends in a flour mill, where extraction rates decide how much flour, bran and feed each tonne yields.

Methods compared

MethodShare of supplyTypical scaleRecovery / efficiencyBy-productsUnit cost
Irrigated smallholder wheat (India, China, Pakistan, Egypt)China and India together grew about 32% of world wheat in 2024 (FAOSTAT)India 31.8 Mha harvested; average farm a few hectaresyields 2024: India 3.56 t/ha, Pakistan 3.27, China 5.94, Egypt 6.78 (FAOSTAT)straw (fodder, often burned in Punjab), branIndia: cost of production Rs 1,239/quintal (A2+FL) against an MSP of Rs 2,585 for RMS 2026-27, a 109% margin (Cabinet decision, 1 Oct 2025); for RMS 2027-28 the MSP is Rs 2,610 against an estimated cost of Rs 1,264, a 106% margin (Business Today, Oct 2026)
Extensive rainfed wheat on large mechanised farms (Russia, Kazakhstan, Canada, Australia, Argentina, US Plains)Russia, the US, Canada and Australia grew about 26% of world wheat in 2024 (FAOSTAT)Russia 27.0 Mha and Australia 13.1 Mha harvested (2024); farms often 1,000-100,000 hayields 2024: Russia 3.06 t/ha, US 3.45, Canada 3.37, Argentina 2.92, Australia 2.61 (FAOSTAT)strawn/a
High-input rainfed wheat (France, Germany, UK, Ukraine)EU production 145.1 Mt in 2025/26, about 17% of world output (USDA)France 4.5 Mha harvested (2024)yields: France 5.97 t/ha in a poor 2024 against 7.12 t/ha in 2000; Ukraine 4.60 t/ha (FAOSTAT)straw, brann/a
Flour milling (roller mills and chakki atta)applies to nearly all food wheatindustrial mills 300-1,000+ t/day; village chakkis a few hundred kg/day (indicative)white flour 72-78% extraction; whole-wheat atta close to 100% (indicative industry norms)bran and middlings (feed), germn/a

How each method works

Irrigated smallholder wheat (India, China, Pakistan, Egypt)

Wheat follows rice or maize in a double-cropping rotation, watered by canals and tubewells. Farms are small, but seed, fertiliser and power are subsidised and governments guarantee a price. India and China both buy large shares of the crop for public stocks.

Stable yields and food security; heavy groundwater use and heat risk at grain fill in March.

FAOSTAT 2024; Cabinet MSP decision for RMS 2026-27 (1 Oct 2025); Business Today (8 Oct 2026) Extensive rainfed wheat on large mechanised farms (Russia, Kazakhstan, Canada, Australia, Argentina, US Plains)

Wide seeders and combines cover thousands of hectares with few workers. Inputs per hectare are low and yields depend on rain. These countries export most of what they grow, so their weather sets world prices.

Lowest-cost export grain; output can swing 20-30% with drought.

FAOSTAT 2024 High-input rainfed wheat (France, Germany, UK, Ukraine)

Long autumn-sown seasons, fertile soils and high nitrogen rates give the world's highest rainfed yields. France is the EU's biggest exporter, mainly to North Africa.

High yields; exposed to fertiliser costs and wet harvests that downgrade milling quality.

FAOSTAT; USDA WASDE Oct 2026 Flour milling (roller mills and chakki atta)

Roller mills crack the grain and sift out bran and germ in stages to make white flour, semolina or maida. Indian chakki mills grind the whole grain between stones for atta. Pasta plants mill durum into semolina.

Low-margin, high-volume business; quality depends on protein and gluten strength.

Industry norms (indicative) Unit economics are indicative ranges from the sources named; costs vary widely by deposit, region and year.

Who does it: global

CompanyCountryActivityVolumeYearSource
CargillUSorigination, export, millingnot published 2025Private company; does not publish wheat volumes
Archer Daniels Midland (ADM)USorigination, export, flour millingnot published 2025ADM reports grain volumes in aggregate, not by crop; not found in public sources checked
Bunge (merged with Viterra in 2025)US/Switzerlandorigination and export in Canada, Australia, Black Sea, Argentinanot published 2025Wheat volumes not published separately
Louis Dreyfus CompanyNetherlands/Franceorigination and exportnot published 2025Wheat volumes not published separately
COFCO InternationalChinaorigination in Black Sea, South America; supplies Chinanot published 2025Wheat volumes not published separately
Sinograin (China Grain Reserves Group)Chinastate reserve stockholdernot published 2025Reserve volumes are not published; USDA puts all China wheat stocks at 122.2 Mt (end 2025/26)

Who does it: India

CompanyCountryActivityVolumeYearSource
Food Corporation of India (FCI) with state agenciesIndiaMSP procurement, storage, PDS and open-market sales35 Mt wheat procured (over 35 Mt by early June 2026; 30 Mt in RMS 2025-26) RMS 2026-27Daily Pioneer citing Ministry of Food, 4 Jun 2026
ITC (Aashirvaad)Indiabranded packaged attanot published FY2026Volume not disclosed
AWL Agri Business (Fortune chakki atta)Indiawheat flour and foodsnot published FY2026Volume not disclosed
NAFED and NCCF (Bharat Atta)Indiasell subsidised atta milled from FCI wheatnot published 2023-2025Volume not found in sources used

India is the second-largest grower (14.2% of world output in 2024, FAOSTAT) and is almost self-sufficient. Exports have been restricted since May 2022; USDA projects only 2.0 Mt of exports in 2026/27 against 0.24 Mt in 2025/26.