Wheat import required to boost buffer stock: Pawar
Agriculture and Food Minister Sharad Pawar on Tuesday said the buffer stock needs to be augmented to meet any exigencies.
By PTI |
NEW DELHI: A day after state-owned trading firm MMTC floated a global tender to import 3.5 lakh tons of wheat, Agriculture and Food Minister Sharad Pawar on Tuesday said the buffer stock needs to be augmented to meet any exigencies.
However, the minister ruled out further import of wheat this year other than the 10 lakh tons already planned.
"We are not very happy with the buffer stock. We do require some buffer stock if emergency comes," Pawar told reporters at Economic Editors' Conference here.
The state-owned trading firm MMTC had yesterday floated a global tender to import up to 3.5 lakh tons of wheat. This was part of the total 10 lakh tons of wheat import planned by the government, which had already contracted over 13 lakh tons of foodgrain from overseas market.
The Minister emphasised that it was a conscious decision to import wheat to bridge the demand-supply gap.
Asked about the rationale of import at a time when wheat prices are lower than the level a year ago, Pawar said the import was not only meant to meet the requirement of public distribution system but also to build up enough buffer stock to meet any exigencies.
Expressing his concern over delay in sugarcane harvest in Uttar Pradesh, he said that since UP is the largest wheat producing state, there was a need to take an early decision regarding crushing of sugarcane so that the farmers are able to sow wheat in the vacant field.
"Until and unless the fields are vacant, farmers will not be able to sow wheat," Pawar said emphasising that the country require some stock to ensure food security.
Mills in UP have not yet started crushing sugarcane because of high cane prices announced by the state government compared to the price announced by the union government. PTI
Asked about wheat import beyond 10 lakh tons, Pawar said: "I do not think that will be required".
He said current wheat prices are ruling at Rs 1,068 per quintal at Delhi wholesale markets against over Rs 1,120 a quintal in the year-ago period. This despite the fact that government increased the procurement price (including MSP and bonus) by Rs 150 per quintal during last Rabi season.
The Minister ruled out any further increase in Minimum Support Price (MSP) of wheat, which has been raised to Rs 1,000 per quintal for the 2007-08 season.
On the back of increased MSP, Pawar said: "We are expecting more area will be under wheat and there will be a bumper production."
When asked about how much wheat production he was expecting during the on-going Rabi season, Pawar said there would be ample production and import would not be needed.
Wheat production is estimated at 74.89 million tons in 2006-07 season and the government is targeting an output of 75.5 million tons in the Rabi 2007-08.
On charges that he was favouring import instead of hike in MSP, Pawar said "I am not at all happy with imports. But when it comes to food security, I have to take certain decisions."
He said that UPA has increased the wheat MSP by Rs 380 per quintal against Rs 50 per quintal by previous government. The MSP for wheat has been fixed at Rs 1,000 per quintal for the coming rabi season as against Rs 620 in 2003-04.
On reports of diversion of area to wheat from sugarcane and mustard, the minister said: "If there is a diversion from sugarcane, then I would be happy." Pawar emphasised that wheat is an important crop and said that the thrust area for the government would be wheat, rice, pulses and oilseeds.
However, the minister ruled out further import of wheat this year other than the 10 lakh tons already planned.
"We are not very happy with the buffer stock. We do require some buffer stock if emergency comes," Pawar told reporters at Economic Editors' Conference here.
The state-owned trading firm MMTC had yesterday floated a global tender to import up to 3.5 lakh tons of wheat. This was part of the total 10 lakh tons of wheat import planned by the government, which had already contracted over 13 lakh tons of foodgrain from overseas market.
The Minister emphasised that it was a conscious decision to import wheat to bridge the demand-supply gap.
Asked about the rationale of import at a time when wheat prices are lower than the level a year ago, Pawar said the import was not only meant to meet the requirement of public distribution system but also to build up enough buffer stock to meet any exigencies.
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Expressing his concern over delay in sugarcane harvest in Uttar Pradesh, he said that since UP is the largest wheat producing state, there was a need to take an early decision regarding crushing of sugarcane so that the farmers are able to sow wheat in the vacant field.
"Until and unless the fields are vacant, farmers will not be able to sow wheat," Pawar said emphasising that the country require some stock to ensure food security.
Mills in UP have not yet started crushing sugarcane because of high cane prices announced by the state government compared to the price announced by the union government. PTI
Asked about wheat import beyond 10 lakh tons, Pawar said: "I do not think that will be required".
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He said current wheat prices are ruling at Rs 1,068 per quintal at Delhi wholesale markets against over Rs 1,120 a quintal in the year-ago period. This despite the fact that government increased the procurement price (including MSP and bonus) by Rs 150 per quintal during last Rabi season.
The Minister ruled out any further increase in Minimum Support Price (MSP) of wheat, which has been raised to Rs 1,000 per quintal for the 2007-08 season.
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On the back of increased MSP, Pawar said: "We are expecting more area will be under wheat and there will be a bumper production."
When asked about how much wheat production he was expecting during the on-going Rabi season, Pawar said there would be ample production and import would not be needed.
Wheat production is estimated at 74.89 million tons in 2006-07 season and the government is targeting an output of 75.5 million tons in the Rabi 2007-08.
On charges that he was favouring import instead of hike in MSP, Pawar said "I am not at all happy with imports. But when it comes to food security, I have to take certain decisions."
He said that UPA has increased the wheat MSP by Rs 380 per quintal against Rs 50 per quintal by previous government. The MSP for wheat has been fixed at Rs 1,000 per quintal for the coming rabi season as against Rs 620 in 2003-04.
On reports of diversion of area to wheat from sugarcane and mustard, the minister said: "If there is a diversion from sugarcane, then I would be happy." Pawar emphasised that wheat is an important crop and said that the thrust area for the government would be wheat, rice, pulses and oilseeds.
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