The Hindu Business Line : STC floats wheat import tender for 10 lakh tonnes

Stock availability
During 2006-07, imports of the Government account totalled 55 lt.
Wheat stocks as on March 31, at 45.63 lt, is more than the 40 lt buffer norm for the start of the 2007-08 rabi marketing season (April-June).

New Delhi April 30 State Trading Corporation of India (STC), on Monday, floated a tender for import of 10 lakh tonnes (lt) of wheat for the public distribution system (PDS). The imported wheat — meant to plug the deficit resulting from lower-than-expected procurement by the Government agencies — is to arrive by July.

If the latest tender goes through, it would mark a second successive year of wheat imports by the Centre. During 2006-07, imports of the Government account totalled 55 lt. The tender — to open on May 10, with offers valid till May 18 — requires 5.35 lt of wheat to be delivered in May-June and the balance 4.65 lt in July.

Total imports

Of the total 10 lt imports, 3.2 lt is to be made through the Mundra port, 2.4 lt through Kandla, two lt through Chennai, 1.6 lt through Visakhapatnam/Kakinda and 0.8 lt through Tuticorin. The parcel size has been set at 25,000-75,000 tonnes for Mundra and 25,000-50,000 tonnes for the other ports.

Wheat stocks in the Central pool, as on March 31, stood at 45.63 lt, which is more than the 40 lt buffer norm for the start of the 2007-08 rabi marketing season (April-June).

Procurement

However, with procurement levels trailing so far this season — notwithstanding domestic output being estimated around 45 lt higher than last year — the Centre has decided to play it safe and embark sufficiently early on its import programme.

Latest data

As per the latest data compiled till Monday, the Government agencies had bought only 78.58 lt of wheat in the ongoing 2007-08 season, against the 87.94 lt during the corresponding period of 2006-07. On the other hand, the Centre has targeted total purchases of 151 lt, compared to the dismal 92.25 lt of 2006-07.

Progressive procurement in Punjab has been 53.33 lt (against 66.12 lt in the same period last year), while amounting to 24.41 lt (21.60 lt) in Haryana, 59,964 tonnes (14,162 tonnes) in Rajasthan, 22,311 tonnes (20,769 tonnes) in Uttar Pradesh (UP) and 2,078 tonnes (20 tonnes) in Madhya Pradesh (M.P.).

Officials say that while Punjab and Haryana would eventually end up delivering around 110 lt, the worry is over the other States, which have together contributed just over 85,000 tonnes. In M.P. and Rajasthan, large corporate buyers, who have paid more than the Government's price of Rs 850 per quintal, have cornered the bulk of the market arrivals.

Bihar and UP have had bumper crops this year, but the absence of a proper mandi network has undermined the ability to undertake adequate purchases for the Central pool. Worse, with elections to the UP Assembly in full swing, the official machinery in the State has not really focussed itself to the task of procuring wheat.