Govt may scale down wheat buying target

The government may reduce its wheat procurement target from 162 lakh tonne in the rabi marketing season due to unfavourable weather conditions.

It is also preparing a contingency plan to address a possible rise in milk prices in the coming months.

The high powered price monitoring board, chaired by cabinet secretary BK Chaturvedi, has accordingly issued directions for necessary steps to be taken to ensure procurement on a larger scale in the coming marketing season, particularly in Uttar Pradesh. It has also issued instructions to the animal husbandry department for a milk contingency plan.

Meanwhile, the first tranche of imported wheat is expected to arrive by April 8 or 9. The government had last month awarded a tender for the import of five lakh tonne wheat to the Australian Wheat Board for shipment to five south Indian ports.

Chaturvedi has emphasised the need to gear up the state procurement machinery "for procuring as per targets and deployment of the Food Corporation of India (FCI)". FCI has decided on a large procurement drive in UP by opening centres across the state.

Procurement of rice is expected to touch a record of 240 lakh tonne as per the final estimates for 2005-06 marketing season. As of now, the government has procured 205 lakh tonne rice, much higher than last year's figure of 186 lakh tonne.

Given the procurement estimate and projected offtake during 2006-07, balance stock as on April 1 is estimated at 140 lakh tonne, well above the minimum buffer norm of 122 lakh tonne.