The Hindu Business Line : Wheat procurement in full swing, tops last year’s buy

New Delhi, April 28 The Centre is well set to cross its target of wheat procurement for buffer stocks by the end of this week itself. According to an official press release, the Food Corporation of India and other procurement agencies have so far mopped up 12.6 million tonnes (mt) of wheat against the target of 15 mt. This is nearly 84 per cent of the target.

Late arrivals

Though the Centre procurement begins on April 1, this year it began only around April 14 as arrivals were delayed due to rains and hailstorms in some of the growing areas in Punjab and Haryana.

In spite of this, the Government agencies have surpassed the total wheat procured from the domestic market last year, when a total of 11.12 mt was procured.

Last week, the Union Food and Agriculture Minister, Mr Sharad Pawar, said this season’s wheat procurement could touch 17-19 mt, while ruling out the need to import wheat this year.

Higher MSP

To ensure higher procurement this year, the Centre increased the minimum support price (MSP) to Rs 1,000 a quintal. However, farmers in Madhya Pradesh are paid Rs 11,000 in view of the State Government announcing a higher support price there.

Apart from higher MSP, the Railways’ move to not make available rail wagons to private buyers for foodgrain transportation, made it more difficult for them to procure grain.

Of the total wheat procured this year, nearly 85 per cent has come from Punjab and Haryana. In Punjab, 6.76 mt of wheat has been procured, while in Haryana, it has exceeded 4 mt.

Other contributions

Other significant contributions have come from Madhya Pradesh (0.78 mt) and Uttar Pradesh (0.54 mt). Last year, the contribution of these two States to the Central pool was insignificant.

The higher procurement this year comes on the heels of an estimated record production of 76.8 mt against last year’s 75.81 mt.

Though the area under wheat this year was lower, a record yield has helped buoy the production.

Last year, the yield was 2.609 tonnes a hectare; the highest yield recorded so far has been 2.778 tonnes during 1999-2000.

Prices gain

Meanwhile, wheat prices in the New Delhi market increased by Rs 50 a quintal on demand to Rs 1,070-1,125 a quintal for the dara variety.

The Madhya Pradesh variety wheat is being quoted at Rs 1,561, while in Uttar Pradesh it is quoted at Rs 1,120.

In view of imports during the last two years, buffer stocks as on April 1 were 5.81 mt against the norm of 4 mt, the Union Minister of State for Food and Agriculture, Mr Akilesh Prasad Singh, told the Lok Sabha on Monday.

More Stories on : Wheat | Wheat

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