Govt may Replenish its Wheat Stocks

08.05.2017

Government agencies may increase purchases of wheat from farmers by onethird during the rabi marketing season this financial year to replenish stocks following two years of drought, although the quantity will fall short of a previously set target.

Wheat procurement is expected to be about 30.5 million tonnes, a 33% increase from 22.96 million tonnes in the previous year. However, wheat purcha

ses will be less than the goal of 33 million tonnes, with buying set to fall short of target in Haryana, Madhya Pradesh and Rajasthan, the Food Corporation of India said.

\x93As per field reports, we anticipate wheat procurement to end at 30 to 30.5 million tonnes. Current procurement is 25.44 million tonnes, as on May 4,\x93 said an FCI official, adding that with an opening stock of 6.78 million tonnes on April 1, it would be able to comfortably meet demand from the public distribution system and maintain the required buffer stock.

However, Tejinder Narang, a grain analyst and former director of state-run tradingcompany PEC, said looking at the current procurement levels, the government will have to allow imports at zero duty.


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