NEW DELHI: The shortfall in the availability of wheat in the domestic market last year that pushed prices up, is expected to be made up this year with the expectations of a "good crop" this rabi. Although officials are still reluctant to make early predictions, it is estimated that wheat production will touch 74 million tonnes this season, as against 69.4 million tonnes produced last year. The target for wheat procurement for the Public Distribution System is set at 130 lakh tonnes as against the 92.5 lakh tonnes procured last year.

With a ban on wheat exports and futures trading in wheat, it is expected that the mandi arrivals would be procured by the Food Corporation of India and government agencies. Sources said the farming community is hopeful of the government giving a bonus of Rs. 50 a quintal in addition to the minimum support price of Rs. 750 a quintal for wheat this season. Procurement commences in Punjab and Haryana from April 1. It will be earlier in Madhya Pradesh.

So far most of the 55 lakh tonnes of imported wheat has arrived. The buffer stock of wheat on April 1 would be 45 lakh tonnes. With a procurement target of 130 lakh tonnes, the wheat availability would improve during the year which would help contain the price of wheat, atta, bread and various wheat products.

Agriculture Minister Sharad Pawar too has expressed optimism on wheat output in view of the favourable weather so far. The recent rains and reports from farm commissioners from wheat producing States indicate that wheat production would cross the earlier estimates of 72.5 million tonnes, he told journalists on the sidelines of an India-Africa Agrifood Summit here.

However, at a workshop on Wheat Management-Rabi, 2007 Food Secretary T. Nanda Kumar said the Centre would soon convene a meeting with State Governments to impress upon them the need to rationalise mandi taxes and levies that also contribute to the higher price of wheat. The Food Secretary said the government would not hesitate to import further quantities of wheat and to procure more wheat this season to maintain the Public Distribution System and welfare schemes.

He countered the rumour that a ban on futures trading of wheat and rice was imposed to allow the Food Corporation of India to procure more. The Parliamentary Standing Committee on Food recommended the ban, he clarified. On his part, FCI Chairman Alok Sinha advised roller flour millers to collectively think how best to bring down prices of atta and wheat products.

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