Wheat procurement may dip by 2-3 mn tonnes this year: USDA

Wheat procurement is expected to decline by 2-3 million tonnes in 2010-11 from a record 25.4 million tonnes in the previous year, the US Department of Agriculture has said in a report.

"...Procurement during the full marketing year 2010-11 (April-March) is now expected to fall short of 2009-10 record procurement of 25.4 million tonnes by 2-3 million tonnes, reflecting the production decline," USDA said.

The Department has pegged India's wheat production at 79 million tonnes this year against last year's record 80.68 million tonnes due to a sudden rise in temperature during March, which affected proper grain development and lowered yield prospects.

Last week, Food and Agriculture Minister Sharad Pawar had said that wheat procurement would be at 24.5-25 million tonnes in the ongoing marketing year. However, state governments have targeted to procure 26.2 million tonnes.

The country's total wheat procurement till May 6 this year has declined 1.8 per cent to 20.78 million tonnes, compared to 21.16 million tonnes in the year-ago period, in spite of higher arrivals in the mandis.

As per Food Corporation of India (FCI) data, arrivals have increased by 2.4 per cent to 22.83 million tonnes compared to 22.29 million tonnes last year.

Barring Madhya Pradesh, procurement from the major contributors to the central pool, such as Punjab, Haryana, Uttar Pradesh and Rajasthan, has declined.

MP has more than doubled wheat procurement at 30 lakh tonnes so far compared to 13.22 lakh tonnes in the corresponding period of 2009-10.

Punjab has contributed the maximum quantity -- over 10 million tonnes of wheat -- to the central pool so far this marketing year, down three per cent from 10.40 million tonnes during the corresponding period last year.

Wheat procurement in Haryana stood at 62.80 lakh tonnes so far this year, down seven per cent from last year.

Uttar Pradesh has purchased 40 per cent less wheat at 9.59 lakh tonnes this year.