Pawar writes to MPs, defends wheat import at higher price

Defending the government's decision to cancel an earlier tender for importing wheat and then deciding to buy the grain at higher prices, Agriculture Minister Sharad Pawar said the decision was taken after consultations with all concerned and "to ensure food security and insulate those below poverty line from price rise."

Pawar, in a letter written to all MPs, said the State Trading Corporation (STC), while advising imports at $263 per tonne, stated that the prices would soften as wheat from Russia, Germany and other European countries was expected into the market around July and August.

This, he said, led to the cancellation of the tender process started in March. Also, a report by the International Grain Council (IGC), affiliated to the UN, said the world wheat production would increase from 593 million tonnes last year to 621 million tonnes this year.

However, a US department of agriculture's report on June 11 projected the world production at 610 million tonnes and not the 621 million tonnes projected by the IGC, Pawar said, adding the decision to import at $ 325.59 per tonne was taken after this.

The letter also claimed that the minimum support price of Rs 850 per quintal before the start of procurement was higher than the then international price.