Agri Business

Govt targets record wheat procurement of 26 mt

| | Updated on: Feb 15, 2011

Buoyed by estimates of bumper wheat production, the government is targeting procurement of a record 26 million tonnes in 2011-12 from farmers at a support price of Rs 1,120 a quintal.

The government is expecting to procure 26 million tonnes in 2011-12 marketing year (April-March), which is 16 per cent higher than last year’s 22.52 million tonnes.

The previous high was achieved in 2008-09 marketing year, when the procurement stood at 25.3 million tonnes.

“The government expects a bumper wheat crop and the estimated procurement may be to the tune of 26 million tonnes,” Food Corporation of India (FCI) said in a statement.

According to the estimate released by the Agriculture Ministry, wheat production is likely to touch a new record of 81.47 million tonnes this year as against 80.71 million tonnes in the previous year.

FCI is the nodal agency for procurement and distribution of foodgrains. It also involves other state agencies to buy the grains from farmers.

Anticipating shortage of space on account of likely high procurement, FCI has decided to hire godowns for one year to store wheat, which will be harvested from April onwards.

“The efforts will be to hire as much as capacity as possible under one year guarantee scheme so as to meet the storage requirement for the coming rabi season,” the statement added.

Recently, Food Minister Mr K V Thomas had said the government plans to add 17 million tonnes of storage capacity in the next 2-3 years in view of higher procurement, which is essential to implement the National Food Security Act.

Published on February 15, 2011

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