Wheat procurement falls 18% to 22.9 million tonnes as lower arrival bites

By: |
New Delhi | Published: June 23, 2016 5:26:00 PM

In the current 2016-17 marketing year, wheat procurement has touched 22.9 million tonnes and the purchase process has almost ended.

Food Corporation of India, Food Corporation of India News, National Food Security ActThe Food Corporation of India (FCI), had procured 28 million tonnes of wheat in the 2015-16 marketing year (April- March). (PTI)

Wheat procurement has taken a hit as it has declined 18 per cent to 22.9 million tonnes so far this year following lower arrival of grains in the market despite forecast of a higher output.

In the current 2016-17 marketing year, wheat procurement has touched 22.9 million tonnes and the purchase process has almost ended.

The Food Corporation of India (FCI), the nodal agency for procurement and distribution of foodgrains, had procured 28 million tonnes of wheat in the 2015-16 marketing year (April- March). Bulk of the procurement is done during April-June.

Procurement has fallen mainly due to lower arrival of wheat this year at about 25.6 million tonnes as against over 31 million tonnes last year, a senior official said.

However, the official said there would not be any shortage of wheat in the country as FCI has about 31 mt of wheat in the stock as against the buffer norm of 27.5 million tonnes as on July 1.

In view of the lower procurement, the government has reduced the quantity of wheat to be sold under Open Market Sale Scheme (OMSS) in 2016-17 against 10 mt last year.

As per the Agriculture Ministry’s third advance estimate, the country’s production has risen to 94.05 mt in the 2015-16 crop year (July-June), from 86.53 mt in the previous year.

The government has decided to further extend 25 per cent import duty on wheat to curb inward shipments. Private traders have so far imported 5 lakh tonnes of wheat from Australia and France.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

FinancialExpress_1x1_Imp_Desktop