The Hindu : National : No move to import wheat

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Sunday, May 29, 2005

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National

No move to import wheat

Special Correspondent

Production likely to marginally exceed last year's level

NEW DELHI: Despite attempts by traders and international players to affect the market sentiment, there was no move to import wheat as production was likely to reach last year's level, sources in the Ministry of Agriculture said here on Thursday. The rabi-procurement season is on till June 30.

Although figures are yet to be firmed up, wheat output may marginally exceed last year's level of 72 million tonnes. This is more than sufficient to meet the country's requirement for the Targeted Public Distribution System, the Food-for-Work programme and welfare needs, as well as maintain a buffer stock.

The overall rabi production, however, is expected to exceed the kharif output of 104 million tonnes due to higher output of pulses and oilseeds over last year.

Shortfall fuels rumours

A shortfall of about one million tonnes in the procurement of wheat by government agencies so far has fuelled rumours that the Government might import the grain.

This is being done to affect market sentiment, whereas wheat is still arriving in mandis in Uttar Pradesh, Madhya Pradesh and Bihar. Uttar Pradesh contributes about 35 per cent of the entire wheat production.

So far, the Food Corporation of India has procured 14.7 million tonnes of wheat against 16.8 million tonnes procured last year during the corresponding period.

Food Ministry sources said the procurement was likely to touch 15 to 15.5 million tonnes at the end of the season.

Sources said there might be some hoarding in Punjab and Haryana where procurement was almost over. The hoarding, it is said, was more by traders than by big farmers. Meanwhile, the Agriculture Ministry is keeping a close watch on the monsoon situation for kharif (paddy) sowing.

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