Wheat procurement at record high, tops 26 million tonnes target

Wheat procurement during the ongoing 2011-12 rabi marketing season (April-June) has crossed the Centre's target of 26 million tonnes (mt) to reach an all-time-high.

According to the latest official data, the Food Corporation of India and State agencies have so far bought 26.19 mt of wheat, which is more than previous record procurement of 25.38 mt achieved in the 2009-10 marketing season.

Moreover, with wheat still coming into the

mandis in Madhya Pradesh (MP), Uttar Pradesh (MP), Rajasthan and Bihar – and translating into daily buys of over 0.1 mt – the total procurement figure could end up surpassing the 27-mt mark. That would amount to roughly a third of the 2010-11 crop (marketed in 2011-12), estimated at a record 84.27 mt.

The States that have witnessed unprecedented levels of procurement this time are Punjab and MP, where the Government agencies have till now mopped up almost 11 mt and 4.75 mt, respectively (see Table).

At the start of the current marketing season on April 1, wheat stocks in the Central pool were placed at 15.36 mt against the minimum buffer and strategic reserve requirement of seven mt for that date. By July 1, the stocks are likely to be in the region of 40 mt or twice the corresponding required level of 20.1 mt.