April 2, 2007

India wheat stocks up
 

Wheat stocks in India have more than doubled at over 50 lakh tonnes on April 1 against 20 lakh tonnes during the same period last year.

The buffer stock position is 10 lakh tonnes more than the stipulated 40 lakh tonnes, putting the government in a comfortable position just when the procurement season has begun.

Food Corporation of India (FCI) chairman and managing director Alok Sinha said lower procurement of 92.26 lakh tonnes by FCI last year, coupled with low buffer stock at the beginning of last fiscal, had necessitated wheat import of 55 lakh tonnes.

Sinha was hopeful of meeting the procurement target of 151 lakh tonnes to take the total wheat availability to over 200 lakh tonnes.

Commenting on reports about private traders currently buying wheat at a higher rate than the support price of Rs 850 per quintal, he said it was not true.

Sinha said only 49,000 tonnes of wheat was lifted when FCI in February wanted to sell four lakh tonnes at Rs986 per quintal in the open market.

He said private traders would not go for huge purchases this season.