Wheat procurement gains pace, 75% completed

The favourable climatic conditions across the country this rabi season helped the procurement agencies to have comleted nearly 75 per cent of the targeted wheat procurement till now. The food ministry had fixed a target of procuring at least 26 million tonnes of wheat this year. The procurement agencies are sanguine about the good weather in north after cloudy days in the last week of April. The wheat procurement touched 22.5 million tonnes last season.

Till date, total procurement of 19.54 million tonnes has been done. Punjab has targeted 11 million tonne procurement and Haryana 6.8 million tonnes. Uttar Pradesh is also likely to achieve a target of 4 million tonnes this year.

Wheat procurement is on its culmination in Punjab, Haryana, Uttar Pradesh, Rajasthan, Bihar and Madhya Pradesh. According to officials at the Food Corporation of India, the procurement process formally lasts till June 30, but the arrivals start dwindling after May 15.
 

ON A HEALTHY NOTE Rabi procurement in states till May 2 (in million tn)
State	2010	2011
Punjab	0.98	0.94
Haryana	0.61	0.59
Uttar Pradesh	0.70	0.53
Madhya Pradesh	2.70	2.98
Rajasthan	0.38	0.50
Gujarat*	5,000	28,000
Bihar*	14,000	6,000
* in tonnes

Sources in government department informed that Bihar has a target of 700,000 tonnes and Madhya Pradesh of 3.5 million tonnes. So, substantial quantities are still to be procured from these two states and Rajasthan is also likely to fetch 300,000-400,000 tonnes for the central pool.

Private traders do not have an incentive to buy wheat at this juncture as prices are hovering around the minimum support price (Rs 1,120 a quintal plus Rs 50 a quintal bonus). Most private traders and millers have taken a view that wheat would be available at cheaper rates even if they wait for some more time.

The officials in the state food and supply department said farmers are now well aware of the government policies and are not lured by the private traders.

Farmers are yet to get bonus in most of the states as the bonus amount is exempted from taxes and levies of the state governments. Some of the states have informally started distributing to avoid farmers’ resentment and it is in the process in most of the states.

Meanwhile, the Union Food Minister K V Thomas is visiting Punjab tomorrow to have an insight into procurement operations in the state that contributes a lion’s share in the wheat procurement. He is expected to visit mandis in and around Amritsar.