Imported wheat to arrive on Sunday

The first lot of wheat imported from Australia's AWB will reach India on Sunday, about ten days behind schedule.

The initial shipment will be 50,000 tonne, and by the month-end a total 2,50,000 tonne will reach the country, a government official said on Tuesday. The next shipment is being loaded at one of the Australian ports, the official said.

The government has contracted a 5,00,000 tonne wheat export deal with the Australian company at $178.75 per tonne.

Under the contract, 2,50,000-3,00,000 tonne wheat was to arrive by April-end.

The first shipment, which was slated to reach Chennai port on April 13, has been running behind schedule on procedural delays, the official said.

"Since this was the first lot, there were many protocol issues. However, this cannot be termed a delay...we have to import 2,50,000 tonne wheat by April-end, and we will," the official said.

In March, the government had decided to import wheat after a gap of seven years to augment its buffer stocks and rein in prices.

The government's buffer stocks are seen at 2.1 million tonne as on April 1, nearly half of the norm of 4 million tonne.

Low stocks may force the government to import another 1.5-2 million tonne this year.

Late last month, Agriculture Minister Sharad Pawar had indicated that additional 1.5-2 million tonne imports may be needed to shore up stocks.

Additional wheat import also seems likely as the government's wheat procurement so far has been very low.

It has purchased only 6,40,000 tonne during March 20-April 9, down 51 per cent from a year ago as current market prices are way higher than the government's minimum support price of Rs 650 per 100 kg.

The government plans to buy 16.2 million tonne wheat in the current procurement season.

According to officials, even if the government manages to meet its wheat procurement target for the current year, it would still fall short of 70,000 tonne wheat needed for the public distribution system.