February 20, 2006

India to import 500,000 tonnes wheat to buffer shortage
 

India has decided to import 500,000 tonnes of wheat as it anticipates a shortage of wheat buffer stocks in the April 2006 to March 2007 marketing year, Food Minister Sharad Pawar said Monday.

"We will have adequate stocks to run the Public Distribution System from the upcoming harvest, but it is possible that there could be a shortage of buffer stocks," Pawar told parliament.

Under the Public Distribution System, the government sells wheat and rice at subsidised rates.

It also maintains a buffer stock to meet exigencies such as drought and floods. Each year, the buffer stock for wheat has to be at least 4.0 million tonnes on Apr 1.

On Feb 2, the government decided to import wheat as its buffer stocks are expected to total less than 1.5 million tonnes on Apr 1, 2006, Pawar said.

The government will start purchasing wheat from farmers for the Public Distribution System when harvesting begins around Mar 19 in the northern Indian provinces of Punjab, Haryana, Uttar Pradesh and Madhya Pradesh.

In the meantime, imports will be used to build up stocks in the southern states of Karnataka, Tamil Nadu, Andhra Pradesh and Kerala, which primarily do not grow wheat and where consumers faced high prices last month.

Pawar said imported wheat will not be available in the growing regions of central and northern India.