Currently 26 Million Tonnes of wheat have been procured
In the season of 2023, wheat procurement is sufficient enough in India. The Government is hopeful that there is sufficient stock available with farmers and traders to meet domestic demand and there will unlikely any need for imports. Last year’s total procurement of wheat was 18.8 Million Tonnes while present year wheat procurement has surpassed and it has reached 26.2 Million Tonnes.
“As of date, the need for import has not been felt. Production has been good. Since there is a prohibition in force, that means there is adequate stock with farmers and traders. The FCI (Food Corporation of India) also has adequate stocks,” Santosh Sarangi, Director General of Foreign Trade (DGFT), told to businessline.
This year domestic stock can fulfill the demand
The total domestic requirement per year under Public Distribution System (PDS) and other welfare schemes is only 18.4 Million Tonnes.
As of 6th June, wheat procurement in the current Rabi Season was at 26.2 Million Tonnes, which has already exceeded last year’s entire procurement of 18.8 Million Tonnes. As of 30th May, The Food Corporation of India (FCI) has procured 31.2 Million Tonnes from 29 Million Tonnes.
Government steps to help farmers for procurement
Though rain has affected the crops and motivation of farmers drastically, Government took some major steps to help farmers. For healthy procurement, there has been
A) The grant of relaxation in terms of quality specifications of wheat affected by rains,
B) Opening of procurement centers at the village and Panchayat level,
C) Carrying out procurement through Co-operative Societies, Gram Panchayats, and Arhatias, and
D) Permission to engage FPOs for procurement operations.
Rumors by the traders and their clarification by a trader
Rumors are there in the market that wheat stock is not sufficient to mitigate the demand and therefore we may have to import the wheat. The simple logic behind these rumors is, as they want a increased rate for the wheat.
“It is difficult to believe that any stockists will buy at a higher price. Had the production been at record, prices could not have gone above MSP when exports are banned, and there is no possibility of opening the window this year,” said a trader. With current import duty of 40% at USD 290 per tonne free-on-board, wheat is unlikely to be imported even in southern ports, the trader said. Any decision on import has to be at zero duty, and it may help cool the sentiments, he added.