Centre may buy wheat at higher than support price

The government is weighing the option of buying wheat at a price higher than the minimum support price of Rs 750 per 100 kg in the forthcoming rabi marketing season, Agriculture Minister Sharad Pawar said today.

The move aims at ensuring higher wheat stocks with the government.

The rabi marketing year commences April. Wheat procurement, however, commences in March in some states.

In the last rabi marketing season, the government was able to procure only 9.2 million tonne wheat, as open market prices were much higher.

The government had to import 5.5 million tonne wheat to maintain the country's food security and ensure adequate supplies in the market.

"The government is also considering a few other proposals to save wheat, such as allocation of coarse grains in place of wheat," Pawar told the Lok Sabha in a statement.

He said with imports and cut in wheat allocation, the government would have adequate stocks to meet the requirements under the state-run welfare schemes and be able to maintain the 4-million-tonne buffer stock as on April 1.

The government has already reduced wheat allocation for above poverty line families.

The allocation has been rationalised to each state's average offtake for the last three years or the last year's offtake, which ever is lower.

Wheat allocation for above poverty line households in Delhi and rice-consuming states has also been slashed by 25 per cent to conserve the food grain's stocks.

Meanwhile, to ensure higher procurement, the government has also allowed the Food Corp. of India to give an incentive of Rs 10 per 100 kg to farmers who sell wheat directly at the agency's depots, provided these depots have not been declared as mandis, Pawar said.

He said in the last rabi marketing year, the Food Corp. procured 49,025 tonne wheat directly at its depots in Uttar Pradesh and farmers were given an incentive of Rs 10 per 100 kg for direct delivery at FCI depots.

Food Corp. usually procures wheat from farmers in the mandis and then transports it to its depots.