March 30, 2010

India prepares for record wheat procurement

The Indian government is preparing to buy a record 26 million tonnes of wheat for the government pool this season as the procurement season begins in the next few days.

The Indian states, Punjab and Haryana, have informed that they are expecting record production.

"We should be prepared to buy as much wheat as farmers bring in," a top government official said on Friday (Mar 26). The official, however, made it clear that it is not a target.

Last year, the government had purchased a record 25.3 million tonnes wheat when production was at an all time high of 80.6 million tonnes.

Meanwhile, Punjab and Haryana are expecting to procure a record 18.5 million tonnes of wheat or more than one million tonnes from last year, for the government pool this season, on hopes of a bumper Rabi crop. Punjab is targeting to lift 11.5 million tonnes, Haryana is expecting seven million tonnes, according to officials of the food and supplies departments of both the states.