June 30, 2011
India's wheat procurement breaks record
With the assistance of a bumper output and better support price for farmers, India has collected a record 28 million tonnes of wheat this year and is all set to procure more before the season ends in a few more days.
The record wheat collection comes at a time when the government is already facing the problem of plenty, with its granaries overflowing with stocks of over 65 million tonnes of both rice and wheat. The government has a capacity of stocking only less than 60 million tonnes.
According to the official data, the Food Corporation of India (FCI) and other state agencies, 27.74 million tonnes of wheat have been purchased so far this year, which is more than the previous record of 25.38 million tonnes achieved in the 2009-10 marketing season.
"We have already crossed this year's target of 26.9 million tonnes and made a fresh record in wheat procurement," a senior Food Ministry official said.
The current level of procurement is roughly a third of the 2010-11 crops, which is estimated at a record 84.27 million tonnes, he said.
Wheat is being purchased at the minimum support price of INR1,120 (US$25) per quintal set for the current season. Last year, wheat purchases stood at 22.5 million tonnes.
The states that have seen higher levels of procurement this time include Punjab and Madhya Pradesh, where the government agencies have till now purchased almost 11 million tonnes and 4.89 million tonnes, respectively.
Wheat purchases in Haryana stood at 6.89 million tonnes and in Uttar Pradesh at 3.28 million tonnes so far.