Wheat, pulses to stabilise as imports arrive

The government today said the imported wheat and pulses had started arriving in adequate quantities, and prices of these commodities should stabilise.

It also claimed that sugar prices had already begun declining, thanks to bumper production this year.

L Mansingh, the consumer affairs secretary, said additional quantities of wheat and sugar would be released for sale through the public distribution system and open market "� during the festival season "� to keep the prices under check.

"With 6-7 lakh tonne of imported wheat arriving every month from now onwards, the government would be in a better position to intervene in the market should the prices show any abnormal increase in future," said an agriculture ministry official.

The government had a stock of 73.3 lakh tonne of wheat and about 100 lakh tonne of rice exactly a month ago (on August 1). While the rice stock was already far more than the buffer norms that of wheat was lower, but with imports the latter will go up to a comfortable level.

Ministry officials said efforts would be made to boost wheat production in the next rabi season by sending out positive signals to farmers before the planting season. Consumer affairs and agri ministry officials attributed the high wheat prices and low procurement to a shortfall in wheat production and erosion of the government stocks, prompting private traders to mop up more stocks.

They, however, denied private companies holding on to large quantities of wheat, maintaining that most of them had bought the stocks for their own wheat-based business only.

Further, they clarified that though notification had been issued to facilitate imposition of controls and stock limits on commodities for six months, the Centre would not actually do. In fact, it had to take the step as some states wanted their powers for stock curbs to be restored.

Mansingh said sugar prices had already started declining in the wholesale market. However, the fall in the retail prices had been relatively lower, he added. "Our worry is that sugar prices may drop to a level which may hurt the industry and cane growers," Mansingh said.

The note issued at the press meet said the Nafed had already finalised the import of 37,000 tonne urad and 12,300 tonne moong of Myanmar origin. So far, 29,300 tonne of pulses (25,374 tonne urad and 4,379 tonne moong) had arrived at the Chennai port. The Nafed had disposed of 9,965 tonne imported pulses.

Mansingh said the private trade was understood to have contracted for the import of about 4 lakh tonne cheaper varieties of pulses, such as yellow peas, which were being sold in the domestic market at low prices of around Rs 12 a kg.