May 15, 2007

 

India government 2007 local wheat buys at 9.41 million tonnes

 

 

India's federal government has so far procured 9.41 million tonnes of wheat from farmers in 2007, up from 9.19 million tonnes a year earlier, data issued Monday (May 14) shows.

 

While bulk of the purchases have been made in the two northern states of Punjab and Haryana, the government has also procured 201,187 tonnes wheat from northern state of Rajasthan.

 

In India, government purchases wheat from farmers at the set intervention price and sells them to consumers at subsidised rates. The government needs between 11.0 million and 12.0 million tonnes wheat each year to run its subsidised sale programs.

 

Volume of imports depend on the procurement made from local farmers.

 

Last year, government imported a whopping 5.5 million tonnes wheat to meet a shortfall in local procurement.

 

As of May 1, government's wheat stocks are estimated at 11.60 million tonnes, up from 8.99 million tonnes a year earlier.

 

Between May 1 and May 13, government has procured over 1.3 million tonnes wheat locally and also issued a tender to import up to 1.0 million tonnes wheat. The tender closes next Monday.

 

"After accounting for the procurement so far this year, inventories being held from previous year and the tender already issued to import 1.0 million tonnes, government needs hardly an additional 1 million tonnes of wheat to run its sale programmes and still end up with a buffer stock of 4.0 million tonnes on April 1, 2008," a government official said.

 

He said part of this 1.0-million-tonne incremental requirement of wheat will be met through local purchases from the farmers that are still continuing.

 

However, Agriculture Minister Sharad Pawar said last week that despite the healthy stock position of wheat with the government, it may still import a total of 4 million-5 million tonnes in 2007.