May 31, 2012

India's 2012 wheat purchasing rises 31% so far

Wheat procurement in India has touched its highest level so far of 33.63 million tonnes for the 2012-13 marketing year, almost eight million tonnes higher on-year.

The procurement stood at 25.69 million tonnes in the corresponding period of 2011-12 marketing year (April-March).

Wheat procurement has already crossed the last year's total purchase of 28.33 million tonnes and the targeted 31.8 million tonnes for this marketing year.

The record wheat output, estimated at record 90.23 million tonnes in the 2011-12 crop year (July-June), has resulted in bumper procurement by the Food Corporation of India (FCI) and other state agencies.

The higher minimum support price (MSP) of wheat of INR1,285 (US$22.85) per quintal also contributed to the rise in procurement.

According to the data compiled by the FCI, the nodal agency for procurement and distribution of foodgrains, Punjab and Haryana have procured 12.75 million tonnes and 8.63 million tonnes, respectively, in the current season so far.

The two states had procured nearly 10.92 million tonnes and 6.84 million tonnes of wheat in the previous year.

Madhya Pradesh has purchased 7.54 million tonnes so far this year against 4.59 million tonnes in the year-ago period.

An FCI official said that wheat procurement is expected to grow further as daily arrival of the crop in Madhya Pradesh is still over 150,000 tonnes. However, the arrival of wheat in other major growing states of Punjab and Haryana is drying up due to end of the season.