June 24, 2008

India's government wheat purchases from farmers double on-year

India's state-run agencies have procured a record 22.23 million tonnes of wheat from farmers so far in the current marketing year that started in April, a statement from the Ministry of Consumer Affairs said Monday (June 23, 2008).

The procurement this year is more than double the 11.06 million tonnes procured during the year-ago period.

Last year, government wheat procurement from farmers fell short of the target by 3.9 million tonnes and India had to import 1.8 million tonnes to support its buffer stocks.

Wheat procurement is up this year because of a bumper harvest, with an increase in minimum price further sweetening the deal for farmers.

The minimum price was increased INR1,500/tonne to INR10,000/tonne.

Indian officials announced that it looks likely India would not have to import wheat this year after two years of wheat imports.

India's rice purchases have also been going well.

Rice purchases by state agencies have been estimated at 26.06 million tonnes as of Monday in the marketing year that started in October, up from 23.60 million tonnes a year earlier.