Depleting buffer stock of wheat worries Govt

In fact, the Prime Minister is discussing with the Planning Commission and Agriculture Ministry how to make the foodgrain situation drought-proof. The meeting with Pawar was called to clarify the foodgrain stock situation as the PMO felt the Agriculture Minister’s statement that India could go for wheat imports may harden the futures and lead to hoarding of wheat. This, coupled with the oil price hike and an indifferent monsoon, could translate into a foodgrain hike that could have an impact on the Public Distribution System. Finance Minister P.Chidambaram also attended today’s meeting.

Pawar has said that the country could go for imports if required but stocks were comfortable going by the requirement of a buffer. Senior Food Corporation of India officials confirmed that the wheat buffer stock had touched the 14 million metric-tonne mark and the country would need to import only if the Government announced another food-for-work scheme.

The FCI was procuring 1.3 million metric tonnes of wheat every month that would amount to 13 million metric tonnes by April 1 next year. Officials said that in the worst case scenario of a drought this year, 20 lakh metric tonnes of wheat would certainly come from Punjab and Haryana.

The 64-million-metric-tonne mark had been reached due to three successive bumper crops preceeding 2000-01. The stocks later fell on account of following policies: increasing the PDS wheat from 20 kg to 35 kg; giving out two lakh metric tonnes for food-for-work; and allowing wheat export. What further depleted stocks was the fact that wheat was diverted to drought-hit areas of Karnataka and other southern states in 2002-2003.

FCI officials said the buffer stock had also been hit with the farmer going directly to the market rather than sell to the FCI at the minimum support prices.