FCI plans to buy 15.5 m tonnes of wheat

The Food Corporation of India (FCI) is planning to purchase 15.5 million metric tonnes (MMT) of wheat from North and Central India this year out of which, 2 MMT will be purchased from Uttar Pradesh at a support price of Rs 1,000 per quintal.

The Corporation has already purchased 12 MMT of rice and is looking at buying another 6 MMT.

According to FCI Chairman Alok Sinha, the corporation has established 978 purchase centers in the state for wheat purchase, which has begun from March 15. Another 4,200 purchase centers have been established by the Uttar Pradesh government for a speedy completion of this year's purchase target of wheat.

Till April 1, he said, the FCI had purchased 0.15 MMT wheat in the state and this year's 15.5 MMT of wheat is exceeding the previous year's target by 4.4 MMT.

Talking to the mediapersons after holding a meeting in Agra to analyze the wheat production in the state, Sinha said that apart from UP, Punjab will also chip in a share of 8.5 MMT, Haryana will produce 4.0 MMT, Rajasthan and Madhya Pradesh will contribute 0.5 MMT each, while Uttarakhand will have the lowest contribution at 0.1 MMT.

If the wheat collection still fell short of the required 15.5 MMT, the FCI could also purchase wheat from bulk traders at a commission of 2.5 percent.

Apart from wheat, he said, FCI has purchased 12 MMT rice and 6.0 MMT more will be purchased soon.

This year, Mr. Sinha said, the central government has merged all forms of bonuses in the minimum support price of Rs. 1000 and only those farmers who delivered their produce directly to the FCI godowns, will be given a bonus of Rs. 10 per quintal.

He said that the wheat prices have been falling in the international market and at present, the prices stood at 340 USD, while the prices had gone as high as 400 USD when India had expressed a requirement for import of wheat last year.

To control the wheat prices from escalating in the country, he said, restrictions have been placed on private companies and the central government will have to be notified of any purchase over 10 thousand metric tonnes by private companies.