Government To Import 20 Lakh Tonnes Of Wheat

The Union government has decided to import 20 lakh tonnes of wheat in the current year to make up for a shortfall in domestic production, minister of state for food and consumer affairs Satya Pal Singh Yadav informed the Lok Sabha yesterday.

This government decided this after reviewing the status of wheat production during 1997-98 rabi season, he said in a written reply.

The import would include 15 lakh tonnes of wheat from Australia at an estimated cost of $214 million (around Rs 855 crore) by the State Trading Corporation, he said. The balance five lakh tonnes of wheat would not be imported, he added.

The ministry of agriculture initially estimated a shortfall in wheat production during 1997-98 rabi season from 692.7 lakh tonnes last year to 645.1 lakh tonnes during the current year. This has been due to untimely rain during the sowin season.

Yadav defended the decision to import wheat saying it would not affect the interest of farmers. The step would augment the shortfall in production, he added

Farmers were free to sell their produce to the government at a minimum support price (MSP)\ procurement price or in the open market at whatever price they could get, he said.

The MSP of wheat fixed for rabi marketing season 1998-99 was Rs 455 per quintal, besides the government's announcement for a bonus of Rs 55 per quintal for the wheat offered for sale to procurement agencies during march 1 to June 10, Yadav pointed out.

During the year 1996-97, the then United Front government decided to import upto 20 lakh tonnes of wheat during. The State trading corporation singed contracts for import of 16.75 lakh tonnes of wheat from Australia, Canada and Argentina, the minister said. The Food Corporation of India was receiving the imported wheat through ships at Cochin, Mangalore, Tuticorin, Chennai, Pondicherry, Kakinada, Vishakhapatanam, Mumbai and Kandla, he added.

The imported wheat, which was being added to the central pool, would be used to meet requirements of the Public Distributin System and other welfare schemes on a regular basis in the non-wheat growing areas, he said.