March 30, 2007

India's wheat output seen to exceed 72.6 million tonnes in 2007
 

Wheat production in India is expected to surpass 72.6 million tonnes this year as sufficient quantities would be available with farmers for purchase by state agencies and private traders, India's Agriculture Minister Sharad Pawar said on Thursday (March 29).

Pawar said the government had not put any restrictions on purchases by private trade and firms were free to buy the quantities they required.

Earlier reports said the government had asked private sectors to shun from the major wheat producing areas to ensure state agencies made enough purchases to build stocks.

Wheat procurement in 2006 plunged to 9.2 million tonnes against a target of 16 million tonnes because of private trade picking up the grain from farmers at much higher prices.

As a result, the government had to import 5.5 million tonnes of wheat at a huge cost to build stocks and meet demands of welfare schemes.

Indian government expects to procure 15 million tonnes of wheat this year and will resort to importation if procurement falls short of their expectations.

Pawar said he expects farmers would sell its produce to government agencies since it is offered at 850 rupees per 100 kilograms this year, the highest in fifty years.

Wheat harvests in Punjab, Haryana and Uttar Pradesh are expected to begin in the next few weeks.