Indian state set to miss wheat procurement target

Uttar Pradesh is all set to miss its target of wheat procurement in the current rabi season for 2009-10.

Against a target of 39 lakh tonnes during the current season, the agencies of the state government have so far been able to procure only 16.60 lakh tonnes wheat. The procurement season ends on June 30.

Officials blame the current situation on high price of wheat in the open market, shrivelling of the grain due to unseasonal heat wave and the lifting of the stock limit.

"Shrivelling of wheat due to heat wave conditions in March is the single biggest factor for the low procurement. The Union food ministry standards permitted only 7% shrivelling," Uttar Pradesh Food Commissioner Rajiv Agarwal said.

"On our request, the Centre raised the limit to 15% but at the same time, also imposed a value cut and reduced the minimum support price by Rs 50 (US$0.65) per quintal. This prevented the farmers from selling wheat at our procurement centres," Agarwal said.