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Procurement of wheat for the central pool stocks will gain pace this week on expected increase in market arrivals in Punjab and Haryana.
The harvest of wheat has been delayed by prolonged winter and unseasonal rains this year resulting in arrivals being limited so far in these States.
According to Food Corporation of India (FCI) officials, stocks so far in the Central pool stocks have been estimated at 14.7 lakh tonnes, mainly from Madhya Pradesh.
The wheat bought by the Government agencies, is about a tenth of the cereal procured last year.
Smaller quantities have been procured from Rajasthan and Uttar Pradesh also, sources said.
In Punjab and Haryana, officials said FCI is geared up to procure wheat from next week and is waiting for market arrivals.
Waiting for stockTypically, wheat procurement season starts from April 1 in Punjab and Haryana.
The Centre intends to procure about 31 million tonnes (mt) of wheat this year, up from 25 mt procured last year.
Bulk of this would be from Punjab and Haryana.
“The harvest has begun in some areas and we expect arrivals to pick up next week,” said Raj Sood, a trader in Khanna market.
Sood expects the market arrivals this year to be 10-15 per cent higher than last year as an extended winter has boosted yields this year.
In Punjab, the procurement target is pegged at 11.5 mt, up from last year’s 10.95 mt.
Similarly in Haryana, the Government agencies expect about 6.5 mt this year, higher than last year’s 5.88 mt.
Meanwhile, in central Uttar Pradesh, arrivals have picked up and the private trade, led by exporters and domestic millers, is active.
Prices firmThis buying is seen holding the price firm and wheat is currently trading higher than the minimum support price levels in various markets.
The Centre had set a MSP of ₹1,400 a quintal for the current season.
The Government agencies have received good response for the wheat tenders opened on Friday with bids from foreign buyers topping the $280 levels, much higher than the floor price of $260/tonne.
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