Wheat a bit: No need for imports

According to the food ministry figures, wheat procurement in the current fiscal up to May 27, 2005, was lower by 11.5 per cent at 14.21 million tonnes, compared to 16.06 million tonnes in the corresponding period last year.

Till June 8 this year, 158.98 lakh tonnes of wheat arrived in the market, out of which 147.65 lakh tonnes was procured. By the same day last year, 176.46 lakh tonnes of wheat had arrived in the market, out of which 163.93 lakh tonnes was procured.

But according to Food Corporation of India chairman V K Malhotra, low procurement also indicates that the farmer is getting a better price in the market.

‘‘The Punjab farmer has given me all. Haryana is giving a little less. Production there is less but our procurement is related to market price. In a way that’s good. The farmer is getting more,’’ he said. ‘‘I’m happy with procurement. It’s less but enough. I have enough for the consumer,’’ he said.

The FCI has procured 120 lakh tonnes for the PDS and 20-25 lakh tonnes for the food-for-work programme.

Yesterday, agriculture minister Sharad Pawar, who is also the minister for the food ministry, had announced that the Centre could even consider importing wheat if there was a need for it.

Even though procurement is low this year, wheat production estimate is much higher than last year. The latest estimate for wheat production for this year (2004-05) is likely to be 73.5 million tonnes, which is 1.4 million tonnes more than last year’s production, according to the Directorate of Marketing and Inspection, a wing of the agriculture ministry.

But Malhotra said, ‘‘Production impacts procurement if there is a drought. The state government procures 20-25 per cent, we do 10 per cent. We provide a minimum support price but if a farmer thinks he is getting more, he will go elsewhere. We have enough.’’

Even agriculture ministry officials say that the true picture of wheat production will emerge at the end of the month when the crop cutting experiments are tabulated and forwarded by the states.

Meanwhile, procurement of rice during the marketing year 2004-05 (upto May 27, 2005) stood at 22.03 million tonnes, higher by 5.3 percent than the level of 20.92 million tonnes during the corresponding period of 2003-04, said the monthly economic report of the Finance ministry.

Stocks of foodgrains as on April 1, 2005 was 17.41 million tonnes, which was lower by 13 per cent than the level of 20 million tonnes as on April 1, 2004.