Wheat procurement hits a record 200 lakh tonne
Wheat procurement by the government has reached a record high in recent times, making it easier for the state to fight inflation in food prices.
By TNN |
NEW DELHI: Wheat procurement by the government has reached a record high in recent times, making it easier for the state to fight inflation in food prices. According to official figures, wheat procurement has touched 200 lakh tonne on Sunday, exceeding the annual target by 33%.
With this massive procurement, the second highest after 2000, the government can comfortably manage the retail price by strategically releasing the surplus into the market. Wheat procurement is expected to touch 206 lakh tonne by next Sunday.
The government had earlier announced a 50 lakh strategic buffer of rice and wheat for meeting emergency over and above the existing buffer norms. The surplus procurement by the Food Corporation of India (FCI) will go into this buffer.
As on May 17, wheat procurement by FCI stands at 88% of total market arrival of wheat in the country as against 63% in the same period last year. Total procurement last year was at 115 lakh tonne. The government is likely to review the ban on exporting wheat. Critics, however, say the government might take a while to take a decision on this sensitive issue considering political pressure from Left allies.
Meanwhile, finance minister P Chidambaram said in Jalandhar, on Sunday, that in the last two years, the food stock scenario has changed as godowns are full of food grains. Production of wheat has increased by 8 million tonne, rice by 10 million tonne and pulses by 2 million tonne, he said. Credit for the current situation goes to the farmers in Punjab, the minister added.
In order to encourage the agricultural sector, the Centre has earmarked Rs 4,882 crore for the National Food Security Mission and Rs 25,000 crore for the Krishi Vikas Yojana.
This is the first time that provision of such an amount for agriculture sector has been made in the Union Budget, besides, new seeds and fertilisers would be provided to farmers, he said.
To develop organic farming and to encourage horticulture, new godowns would be constructed, Mr Chidambaram said, adding that crop loans at 7% interest would be provided to farmers. He assured that by June 30, as promised in the Union Budget, agricultural loans of Rs 60,000 crore would be waived.
With this massive procurement, the second highest after 2000, the government can comfortably manage the retail price by strategically releasing the surplus into the market. Wheat procurement is expected to touch 206 lakh tonne by next Sunday.
The government had earlier announced a 50 lakh strategic buffer of rice and wheat for meeting emergency over and above the existing buffer norms. The surplus procurement by the Food Corporation of India (FCI) will go into this buffer.
As on May 17, wheat procurement by FCI stands at 88% of total market arrival of wheat in the country as against 63% in the same period last year. Total procurement last year was at 115 lakh tonne. The government is likely to review the ban on exporting wheat. Critics, however, say the government might take a while to take a decision on this sensitive issue considering political pressure from Left allies.
Meanwhile, finance minister P Chidambaram said in Jalandhar, on Sunday, that in the last two years, the food stock scenario has changed as godowns are full of food grains. Production of wheat has increased by 8 million tonne, rice by 10 million tonne and pulses by 2 million tonne, he said. Credit for the current situation goes to the farmers in Punjab, the minister added.
In order to encourage the agricultural sector, the Centre has earmarked Rs 4,882 crore for the National Food Security Mission and Rs 25,000 crore for the Krishi Vikas Yojana.
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This is the first time that provision of such an amount for agriculture sector has been made in the Union Budget, besides, new seeds and fertilisers would be provided to farmers, he said.
To develop organic farming and to encourage horticulture, new godowns would be constructed, Mr Chidambaram said, adding that crop loans at 7% interest would be provided to farmers. He assured that by June 30, as promised in the Union Budget, agricultural loans of Rs 60,000 crore would be waived.
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