The decline in government procurement is particularly evident in Madhya Pradesh and Haryana
The decline in government procurement is particularly evident in Madhya Pradesh and Haryana
The center’s wheat sourcing fell 32% to 69.24 lakh tons through April 17 of the current Rabi marketing year as private companies aggressively buy grain for export, official sources said.
According to official data, as of April 17 of the current Rabi Marketing Season (RMS) 2022-23, about 69.24 lakh tons of wheat were purchased by the government agencies, compared to 102 lakh tons in the same period last year.
The Rabi marketing season lasts from April to March, but most sourcing ends in June.
The state-owned Food Corporation of India (FCI) and government agencies source at a minimum support price to meet the requirements of the Public Distribution System (PDS) and other welfare systems.
The center aims to source a record 444 lakh tonnes of wheat in the 2022-23 marketing year, up from an all-time high of 433.44 lakh tonnes in the previous marketing year.
The official sources attribute the recent decline in wheat procurement to increased buying activity by private players, particularly in Haryana and Madhya Pradesh.
However, they said that even a small drop in government procurement will have no impact as the government has excess buffer stocks to meet any requirements.
The decline in government procurement is mostly seen in Madhya Pradesh and Haryana, where private traders are currently actively buying wheat, they noted.
According to the data, the Haryana government’s wheat procurement reached 28 lakh tons by April 17 of the current marketing year, compared to 44 lakh tons in the same period last year. As much as 9 lakh tons were bought in Madhya Pradesh against 17 lakh tons in the same period.
In Punjab, government agencies procured 32 lakh tons of wheat compared to 34 lakh tons in the same period last year.
According to official sources, sourcing in Punjab is slightly lower which may be due to shriveled wheat grains due to the early onset of the heat wave.
Punjab, Haryana and Madhya Pradesh are three main wheat sourcing states.
With the sharp drop in the availability of the grain on the world market due to the ongoing conflict between Russia and Ukraine, there is a huge demand for Indian wheat. Both nations are major producers and exporters of wheat.
Earlier this month, Food Minister Sudhanshu Pandey said traders had signed contracts to export 3-3.5 million tons of wheat in the April-July quarter of the current fiscal year.
It is estimated that the country exported over 7 million tons in fiscal year 2021-22.
Wheat production is set at a record 111.32 million tons in crop year 2021-22 (July-June), according to the second forecast by the Ministry of Agriculture. PTI LUX MJH RAM
