'High prices stop Nafed from buying mustard'

TRADE TALK/ Alok Ranjan, Nafed Managing Director

The National Agricultural Cooperative Marketing Federation (Nafed) has been directed to procure wheat for the first time on behalf of the Food Corporation of India (FCI) in states other than Punjab and Haryana. It is also looking to import bulk quantities of pulses. However, low oilseeds production coupled with higher prices this year is affecting mustard buying. Ajay Modi talks to Alok Ranjan, managing director of the federation.

How do you plan to bring in more pulses after the government's decision for large-scale imports?

We are looking at countries where there is an exportable surplus of pulses. Though the domestic prices may not come down as the international prices are high, they are likely to stabilise. We have ordered the import of 40,000 tonnes of urad this month.

Nafed has been directed to procure wheat on behalf of Food Corporation of India. Will you be able to buy at the current rates?

Though the wheat prices are ruling at Rs 900 in most states, we hope to do some procurement in Uttar Pradesh. In Madhya Pradesh and Rajasthan, trading houses are buying at rates above the minimum support price (MSP) of Rs 850 a quintal. We have also sought permission to buy wheat in Bihar.

The federation had bought about 20 lakh tonnes of mustard each in the last two rabi seasons. However, only 20,000 tonne have been procured so far this season. What is the reason?

We enter the market only when the market price falls below the MSP. Currently, mustard prices are ruling at Rs 1,750 a quintal in most mandis, significantly above the MSP of Rs 1,715. Moreover, there is no buffer or public distribution requirements to be met in mustard as in the case of wheat.

Is there any bulk buying in mustard as it happened in the case of wheat last year?

There are no reports of large-scale corporate buying in mustard. The primary buyers are millers and stockists.

Onion prices rose unexpectedly in February. What is the current trend in onion?

The arrival of onion is good. The prices have come down to Rs 450 a quintal in Nashik and Rs 700 a quintal in Delhi's Azadpur mandi. If prices go down further, farmers will be discouraged from growing onion. We are monitoring the exports to ensure domestic availability.