| In order to create a buffer stock, the Gujarat government has decided to procure 400,000 tonnes of wheat from various parts of the state. The Gujarat State Civil Supply Corporation, the nodal agency for wheat procurement, will soon start purchasing wheat from farmers at Rs 10 per kg. |
| The civil supply corporation will procure wheat along with the Food Corporation of India (FCI) and the National Bank for Agriculture and Rural Development (Nabard), sources said. |
| The corporation will independently procure wheat from Bhavnagar and the North Gujarat region. In districts such as Amreli, Junagadh and Rajkot, procurement will be done jointly with the FCI. In the remaining areas, procurement would be done by all the three entities, they added. |
| In the wake of favourable weather and extended winter, wheat production in Gujarat is expected to increase by 20 per cent to a record level of 3.3-3.4 million tonnes this year. The area under wheat cultivation also increased to 1.29 million hectares in 2007-08 as compared with 1.08 million hectares in 2006-07. Interestingly, Gujarat's wheat productivity is expected to increase by 10 per cent or 3.5 tonnes per hectare. |
| The decision to procure wheat at Rs 10 per kg has come as a major relief for farmers as they will get better returns for their produce. "Farmers were ready to sell their produce at Rs 190 per 20 kg. Still, no one was interested in purchasing as traders are getting wheat even below the level of Rs 190 per 20 kg," said a trader. |
| Currently, wheat prices are hovering around Rs 190 to Rs 192 per 20 kg. There were also reports that Rs 175 to Rs 170 per 20 kg were quoted yesterday in Rajkot. |
| Wheat production in the country is expected to touch around 75 million tonnes this year. |
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