March 29, 2006

India considering importing up to 2 million tonnes of wheat

India is considering importing between 1.5 million to 2 million tonnes of wheat and will make a decision on the matter shortly, Agriculture Minister Sharad Pawar said Wednesday (Mar 29).

"We will probably import more wheat and a tender could be floated in a week or two, though we are not in a hurry," Pawar told reporters at an official meeting.

Pawar said the planned wheat import is only aimed at building buffer stocks of the commodity. He added that there is enough wheat now to meet local requirements and to run the government's subsidised grain sale programme.

In India, the government purchases wheat and rice from the farmers at a set intervention price and sells it to consumers at subsidised rates.

Pawar ruled out any further increase in the intervention price of wheat, which has been set by the government at INR650/100 kg (US$14.54) for the next marketing year till March 2007.

He said the government is likely to purchase 16.2 million tonnes of wheat from local farmers in the next marketing year beginning Apr 1.