June 25, 2012

India's wheat procurement up 35% in current marketing year

In the current marketing season, India's procurement of the key staple has risen by 35% to an all-time high of 37.19 million tonnes, aided by a record production of wheat.

The government had purchased 27.50 million tonnes of wheat in the 2011-12 wheat marketing season (April-March).

The procurement of wheat in this season has already surpassed the government's target of 32 million tonnes.

As per official data, wheat procurement as on June 22 was 37.19 million tonnes and the arrivals stood at 39.46 million tonnes.

Punjab and Haryana have procured nearly 12.82 million tonnes and 8.66 million tonnes of wheat, respectively, in the current season.

Wheat purchase in Madhya Pradesh stood at 8.49 million tonnes, while in Uttar Pradesh it was 4.54 million tonnes.

Wheat production in India, the world's second-largest producer, is estimated at a record 90.23 million tonnes in the 2011-12 crop year (July-June). The minimum support price of wheat stands at INR1,285 (US$22.5) per quintal.

A record production of food grains in the last two consecutive years has led to storage problem.

Food Minister K V Thomas said about 6.6 million tonnes of wheat that is kept open in unscientific way, mainly in Punjab, Haryana, Madhya Pradesh and Rajasthan, runs a high risk of damage during the monsoon.

Of the 50 million tonnes of wheat procured by the government, 27 million tonnes is kept in the open, of which 6.6 million tonnes is lying in an unscientific way.