The Hindu Business Line : Wheat procurement at 10.7 m tonnes

New Delhi June 4 Wheat procurement by the Food Corporation of India (FCI) and State agencies has touched 106.67 lakh tonnes (lt) during the current 2007-08 rabi marketing season (April-June) as on June 3.

Of the 106.67 lt procured for the Central pool, Punjab has contributed 65.55 lt, followed by Haryana (33.26 lt), Uttar Pradesh (3.85 lt), Rajasthan (3.49 lt), Madhya Pradesh (49,825 tonnes), Uttaranchal (1,619 tonnes), Bihar (980 tonnes) and Delhi (834 tonnes). In addition, Punjab has bought 6.04 lt on its own account for a separate "Atta Dal" scheme introduced by the Parkash Singh Badal Government.

Over the last couple of weeks, Government agencies have managed to purchase almost 10 lt of additional wheat, most of this a result of the floating of an import tender by the State Trading Corporation (STC). While the 10 lt tender on Government account was eventually scrapped, it, however, had the effect of getting some wheat out from "within the system". Despite a bumper crop, farmers this time have been holding back significant quantities in anticipation of higher prices later in the year.

With the agencies still managing to procure 80,000-90,000 tonnes on a daily basis, there is every likelihood of total purchases crossing 115 lt by the end of the season. The Food Secretary, Mr T. Nanda Kumar, has said the Government will examine procurement trends over the next 15 days, before firming up a new import tender.

With opening stocks of 45.63 lt as on April 1 and expected procurement of 115 lt, there would be about 160 lt of wheat in the Central pool. Assuming a monthly offtake of 10 lt, there would be 40 lt of opening stocks for the next season, which meets the minimum buffer norm for that date. But the Government may still go ahead with import of about 20 lt just to play it safe. Either way, officials feel there would be no need to import the 55 lt that was contracted by STC last year.