Wheat is widely cultivated all over the world and is consumed as it provides high energy (1506 KCal per 100 gms), has high fibre content and has several required minerals and proteins. It requires only temperate climate and has a short growing season.World wheat production was 690 million tonnes in 2008 ofwhich China produced 112 million tonnes (16.23 percent) followed by 79 million tonnes i n India (11.44 percent). (Source: Global Commodity Markets, 2010, World Bank) Wheat production in India was estimated to be 80.80 million tonnes in 2009-10. It was 40 percent of total foodgrains production and 37 percent of cereal crops production. As incomes grow over time per capita consumption of wheat would also grow to equal world levels. This calls for adequate incentives for farmers to produce more, policies that encourage technology upgradation and higher yields, and reduction in associated risk. The risk faced by producers due to uncertainty in production and in consequent price and income needs to be reduced.