Govt keen on building 6.5 mt wheat buffer

The Union government is keen on building a wheat buffer of at least 6.5 million tonnes by April 1, a senior government official said today.

According to stocking norms, the government should have at least 4 million tonnes of wheat in reserve on April 1 to meet exigencies.

The official said government is hoping that a higher reserve will help it keep wheat prices under control this year as well as the next.

"Wheat is a staple food grain and any rise in prices could be politically sensitive issue, particularly since assembly elections are scheduled for 2009," the official said.

He said higher wheat reserves will enable the government to intervene in the market to keep prices under control.

To build the extra reserve, the government is keen on importing around 5 million tonnes of wheat by March.

Earlier this month, Union Agriculture Minister Sharad Pawar had also said the government will import wheat on a large scale to shore up its stocks.

The import of 5 million tonnes is much more than the government's actual requirement for the current year ending March.

The government needs around 16 million tonnes of wheat until March. This comprises 12 million tonnes for state-run welfare schemes and a carry-over of 4 million tonnes.

The government already has about 15.8 tonnes of wheat in its kitty for the year, taking into account last year's carry-over of 4.7 million tonnes and 11.1 million tonnes procured so far.