India’s food grains procurement drive crossed a record 50 million tonne on Friday, which would help stabilise prices of wheat and rice in the open market.
“Rice procurement has already crossed 27.4 million tonne and we are confident of achieving 27.8 million tonne by September 30,” Aloke Sinha, chairman and managing director of state owned Food Corporation of India (FCI) told FE.
In case of wheat, FCI and states procuring agencies have already lifted more than 27.4 million tonne against the target of 15 million tonne. Thus total procurement of wheat and rice on Friday stands at 50.1 million tonne, which is a record.
The country’s wheat production during 2008-09 is also expected to reach an all-time high of around 78.40 million tonne, up from 75.81 million tonne last year.
This year’s procurement of wheat and rice is 39% more than the purchase of 36.1 million tonne in the corresponding period last year.
The huge rise procurement is largely due to a hike in Minimum Support Price for farmers. “High procurement would ensure that prices in the open market are stabilised,” Sinha said.
Besides about 1 million tonnes of wheat and two million tonnes of rice is allotted to states for distribution through Public Distribution System and for armed forces every month.
Union agriculture minister Sharad Pawar had earlier announced that about 6 million tonne of wheat would be sold in the open market out of FCI surplus.
The government is still working out modalities of selling 1 million tonne of wheat to states to be sold to retail consumer and another 1 million tonne of grains to bulk buyers.
The wheat would be made available to states at the rate of Rs 1,000 per quintal along with the transportation or freight charges.