The Hindu Business Line : Wheat production seen higher at 75.5 m t

The projection of a better crop is against 72 mt produced last season and could turn out to be the highest in six years after the record 76.6 mt during 1999-2000. Wheat is mainly a rabi crop that is sown during winter and harvested in March.

The Ministry is also confident of the arrivals beginning from March third week.

According to the Agriculture Ministry, sowing of wheat till January 23 is up 2 lakh hectares (lh) to 261 lh compared with the corresponding period last year.

Gains in sowing come from increase in area in Gujarat (1.5 lh), Maharashtra (1.8 lh), Rajasthan (1.3 lh), Punjab (60,000 hectares), Uttar Pradesh (6.2 lh), Uttaranchal (40,000 hectares) and West Bengal (1 lh).

Hopes of a rise in production has resulted in the Food Ministry deciding to release 1.5 lakh tonnes of wheat earmarked for February under the open market sale scheme (OMSS) this month itself. This is to ensure that wheat prices, which have been ruling firm, stabilise.

The Centre has already released 1.5 lakh tonnes of wheat earlier this month after it announced that it would release 1.5 lakh tonnes of wheat every month during the first quarter to keep prices under check.

Prices for wheat (dara) hit a record high of Rs 1,012.50 a quintal on January 12 but have dipped to Rs 982 on Wednesday following the release of wheat under OMSS. In Delhi, the prices ruled between Rs 1,010 and Rs 1,015, down from Rs 1,020-1,025 on Tuesday.

According to the Food Ministry, the prices have declined by Rs 50 a quintal since the additional release was made.

The Centre has also made special additional allocation of 73,000 tonnes to six States. Of this, Delhi and Tamil Nadu will get 20,000 tonnes each, Karnataka, West Bengal and Maharashtra 10,000 each and Kerala 3,000 tonnes.

This is apart from the 1.5 lakh tonnes additional release of wheat.

Wheat stocks in the central pool as on January 1 were 62 lakh tonnes. The requirement for the public distribution system and other welfare schemes was around 13 lakh tonnes a month.

As per buffer norms, stocks in the central pool should be 82 lakh tonnes as on January 1. Wheat prices had zoomed mainly on low buffer stocks but the Centre has said the situation is under control, while ruling out imports as an option.

The Government had adequate stocks to meet these requirement and welfare schemes. The Centre will release further quantities of wheat, as required, the Ministry statement said.