Wheat procurement up 11% on increased arrivals

Wheat procurement during the rabi marketing season 2011-12 has gone up by 11% to 24.44 million tonne (MT) so far as compared to the year-ago period on account of increased arrivals. Food Corporation of India (FCI), the nodal agency for procurement and distribution of foodgrains, had procured 22.02 MT of wheat in the corresponding period of the previous year.

The arrivals at various FCI godowns has gone up by 7.41% to 26.36 MT as compared to 24.54 MT in the year-ago period.

Punjab, the largest contributor to the centre's kitty of the major rabi crop last year, has so far procured 10.84 MT of the foodgrain crop against 10.16 MT in the corresponding period of the previous year.

Haryana, the second largest contributor to the buffer stock last year, crossed last season's procurement. Total procurement from Haryana in the 2009-10 rabi season stood at 6.34 MT. The state purchased 6.78 MT of wheat so far compared to 6.33 MT in the same period a year-ago.

Similarly, Madhya Pradesh (MP), another key contributor to government's wheat purchase, has crossed the last season's total procurement. Its entire procurement in the 2009-10 season stood at 3.53 MT.

MP has so far purchased 4 MT of wheat compared to 3.36 MT in the same period a year-ago. In the entire 2010-11 marketing year (April-March), Punjab and Haryana had together procured about 73.53 per cent of the total purchase of 22.51 MT of wheat.

The government is targeting a procurement of 26.2 MT in 2011-12 marketing year on the back of projected record wheat production of 84.27 MT in 2010-11 crop year (July-June).

The government is paying Rs 1,170 per quintal to farmers this season, including a bonus of Rs 50.