The Hindu Business Line : Govt hints at scaling down wheat import target

Home Page - Wheat
Agri-Biz & Commodities - Agricultural Policy
Industry & Economy - Exports & Imports
Govt hints at scaling down wheat import target

Cites higher domestic production as reason for the move

“Elections are a political process and the move to cut down the import target is not influenced by it.”

Our Bureau

New Delhi, Sept. 14

After the Union Agriculture Minister, Mr Sharad Pawar, it is the turn of the Minister of State in the Prime Minister’s Office, Mr Prithviraj Chavan, to suggest a go-slow approach on further wheat imports, following mounting criticism from opposition parties and farmers’ organisations.

Speaking to presspersons on the sidelines of a function at the Confederation of Indian Industry here on Friday, Mr Chavan said the Centre had initially targeted imports of five million tonnes (mt) during the current fiscal.

But this figure could now “come down” after factoring in the higher domestic production of 74.89 mt, against the previous year’s 69.35 mt.

‘Not political’

The Centre has so far contracted imports of 1.3 mt during 2007-08, which leaves a balance of 3.7 mt as per the original target of 5 mt (imports for the Central pool during the previous year amounted to 5.5 mt).

Mr Chavan denied that the move to pare the import target was not prompted by electoral considerations.

“Elections are a political process and the move to cut down the import target is not influenced by it,” he added.

The latest contract for import of 7.95 lakh tonnes (lt) was made at an average $389.45 a tonne.

Unfeasible

That translates into a landed price of almost Rs 16 a kg at the ports, which is way above the Rs 8.50 rate at which domestic wheat was procured for the Central pool from farmers. Considering that wheat prices at the Chicago Board of Trade (December futures) have strengthened by over a dollar per bushel since the floating of State Trading Corporation of India’s last tender on August 23, there is every likelihood of future contracts being made at even higher rates.

This, sources pointed out, make imports an unfeasible option now, both economically as well as politically.

More Stories on : Wheat | Agricultural Policy | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page