NEW DELHI: With private players entering the market and rabi wheat yield lower than expectation, the Centre is concerned at the low level of procurement for the central pool this season. Initial reports show that the government has dithered on its projections for rabi production and procurement.

First, the production is likely to be around 71 million tonnes, as against the projection of 73.1 million tonnes that had been revised from the initial estimate of 76 million tonnes. Secondly, while the government expected total procurement at the end of the season (May-end) to be around 162 lakh tonnes, it has received only 90.1 lakh tonnes so far for the Targeted Public Distribution System. By all, accounts it is unlikely that the procurement levels would touch even the revised figure of 142 lakh tonnes.

Wheat procurement so far has been only 90.1 lakh tonnes compared to 137.4 lakh tonnes procured during the corresponding period last year. What is worrisome for the government is that the major wheat-growing States such as Punjab, Haryana and Uttar Pradesh have fallen way short of expectation.

So far, 67.9 lakh tonnes have been procured from Punjab as against 85.9 lakh tonnes procured last year.

At 21.9 lakh tonnes, Haryana has returned less than half (43.3 lakh tonnes) that had been procured in the corresponding period last year. Procurement in Uttar Pradesh has been only 25,055 quintals compared to 2.65 lakh tonnes procured by this time last year. The Food Ministry had hoped to procure 25 lakh tonnes from Uttar Pradesh during this rabi season.

Last year procurement in Madhya Pradesh was 3.97 lakh tonnes by now, whereas this year the wheat procurement in the State has been negligible. Same has been the case with Uttranchal and Rajasthan. This, despite the government announcing a bonus of Rs. 50 on the minimum support price of Rs. 650 a quintal last fortnight.

"It is too little too late. Private parties (Cargill, ITC and Reliance) had initially bought at as high as Rs. 870 a quintal. At the time open market rates had shot up to Rs. 1,000 a quintal. The high prices in the market also encouraged trader and farmers to stock wheat," said Pradeep Singh, a progressive farmer from Uttar Pradesh.

15 per cent fall

According to him, production had suffered first due to rise in temperature and lack of proper rainfall. His own rabi yield had fallen by about 15 per cent.

The Centre has already taken a decision to import 30 lakh tonnes of wheat, in addition to the 5 lakh already contracted with the Australian Wheat Board.

However, the tendering is embroiled in pressures being brought on the government from several countries including the United States of America to relax the specifications for weeds, fungal and pesticidal residue in imported wheat in the name of "competition."

Besides imports, the Food Ministry also proposes to revive its proposal to cut the allocation for beneficiaries under the Targeted Public Distribution System after the ongoing Assembly elections are over.

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