The Hindu Business Line : Bumper crop

The Government may feel buoyed at the prospect of a bumper wheat crop, especially in the context of the current abnormally high prices of food-grains.

It is indeed positive news that the government has got its act together and that , taking advantage of the higher yields, has started procurement operations already.

The chances of private trade entering the field and buying up the stocks are thus remote.

Although forward trade in food-grains has been banned, there are still possibilities that that the trade may purchase the grain and stock it for future sale. The giant retailers already in the field may also take advantage of the availability and procure the grains.

However, the government’s offer of attractive MSPs to the farmers and procuring enough grains to keep a buffer stock is good strategy.

Hopefully, the days of shortage of food-grains are over and the prices will stabilise at reasonable levels.

T. R. Anandan e-mail

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