Procurement of wheat begins

The Centre's wheat procurement operations commenced today in Punjab and Haryana, but traders believe the government may not be able to make any purchases in both the states till the next week due to low arrivals and high open market prices.

In Karnal, one of the key wheat markets in Haryana, the new crop arrivals are being mopped up by private players, who are buying the food grain at Rs 855-891 a quintal, higher than the government's support price of Rs 850.

A Karnal-based dealer said prices quoted for the new crop are high as arrivals have been very low so far. Only 200 bags (1 bag = 100 kg) of new wheat arrived in Karnal today. He said arrivals are expected to gather steam only by next week.

"Once arrivals gain steam, open market prices should fall to about Rs 850

a quintal.The government will be able to procure when prices ease," the dealer said.

A dealer in Khanna, Punjab, said the crop is yet to be harvested in the state as the moisture content in the standing crop is still high due to the late rains.

He said the wheat harvests are likely to pick only by next week in most parts of Haryana and by mid-April in Punjab.

The government hopes to procure 12-15 million tonne wheat this year as against last year's 9.2 million tonne.

About 90 per cent of the total wheat procured by the government comes from Punjab and Haryana.