Wheat Procurement Surpasses Last Years Level

With wheat procurement exceeding the previous corresponding level yesterday, apprehensions about farmers holding back their produce in anticipation of better prices in the lean season are gradually waning.

According to the latest estimates available with the Food Corporation of India (FCI), the procurement of wheat by public agencies crossed the 13 million-tonne mark yesterday, overtaking last year's corresponding figure of 12.84 million tonnes.

Total market arrivals, too, have been higher this year compared with the last wheat marketing season. Over 13.93 million tonnes of wheat have arrived in the mandis of northern wheat producing states so far. This is over 600,000 tonnes more than last year's 13.3 million tonnes.

 

Fears had been expressed in the beginning of the current wheat marketing season in April, that the growers would prefer to hold back their stocks to sell at higher prices after the main procurement period was over.

This impression was based on the government's announcement that it would sell wheat to the flour millers only at the economic cost, which is around Rs 900 a quintal, against the procurement price of Rs 580.

There was also a feeling that the trade and wheat milling industry would mop up larger stocks in the fear of having to buy their requirement at a much higher price later.

Total purchases by the trade and milling industry add up to only around 900,000 tonnes, of the total arrival of 13.93 million tonnes.

The FCI and the state grain procuring agencies have bought larger quantities of wheat compared with last season in both the major wheat surplus states _ Punjab and Haryana.

The wheat procurement in Punjab yesterday stood at 8.25 million tonnes, against 7.36 million tonnes on the corresponding date last year.

In Haryana, the procurement has touched 3.85 million tonnes, against last season's 3.76 million tonnes.