NEW DELHI: Despite damages to the crop due to adverse weather conditions in the past two months in the wheat-growing regions, the Food Corporation of India (FCI) has augmented its wheat procurement. According to the FCI data, the government agency as on April 20 has procured 124.55 lakh tonne of wheat, 13.45 per cent higher than in the same period in 2022-23 (109.77 lakh tonne).
The FCI has kept a target of procuring 341.5 lakh tonnes (LT) of wheat this year. As on April 20, it has collected over one-third of the target. The bulk of the collection has come from Punjab, Haryana and Madhya Pradesh. Punjab contributed 46.7 LT, Haryana 42.1 LT and Madhya Pradesh 34.8 LT. Haryana has contributed more than half of the set target till now, while Punjab contributed over one-third of the set target.
“We will cross our target soon. We may procure between 350-400 LT against our target of 340 LT,” said a senior official. The government is confident of achieving this year’s target even as the traders foresee lower production due to excess heat in the month of February that was followed by excess rainfall in March in wheat-growing regions.
Last year, the government had fallen short of the procurement target as it only procured 40 percent of its target of 440 LT. Early arrival of heatwave in 2022, which affected the productivity and quality of wheat, was a reason for this.Also, the Russia and Ukraine war led to supply constraints in international market which increased the price of wheat.
The procurement of wheat is important for maintaining India’s food security. India provides cheaper wheat and rice to over 800 million people. This year, the government has fixed the minimum support price of wheat at Rs 2,125. Traders say the current market price of wheat is hovering around this level. So, the government is quite cautious about procurement as this year is critical to maintain India’s buffer stock.