More wheat import likely, says Pawar

The government is considering an additional 1. 5-2.0 million tonne wheat import to shore up its buffer stocks, agriculture minister Sharad Pawar said on Wednesday. Tenders for the import are likely to be floated within one or two weeks, Pawar said.

"I am not in a hurry (to import wheat) but I want to build up buffer stocks," Pawar said on the sidelines of a conference of state food ministers and secretaries.

Earlier this month, in a bid to check prices in the southern states and augment buffer stocks, the government had decided to import 5,00,000 tonne wheat from Australia's AWB at $178.75 a tonne.

The wheat consignment from Australia will reach the country through ports in Chennai, Tuticorin, Kakinada and Visakhapatnam.

According to official estimates, the government's wheat stocks as on April 1 are seen at about 1.5 million tonne compared with the buffer stock norm of 4 million tonne.

Asked whether the minimum support price for the food grain would be raised, Pawar said, "There is no plan to either raise the minimum support price or give bonus for wheat procurement."

The market was expecting the government to declare a bonus for wheat growers as market prices are much higher the minimum support price.

The government has set the minimum support price for wheat procurement from farmers at Rs 650 per 100 kg, while prices in the wholesale markets have been ruling around Rs 850.

Pawar said wheat prices have started falling on fresh arrivals.

On Monday, spot wheat fell by over Rs 100 per 100 kg to Rs 800-825 in Delhi compared with Saturday due to fresh arrivals from Madhya Pradesh and Gujarat. Prices are expected to soften further to Rs 750 per 100 kg within a fortnight once arrivals from Punjab and Haryana begin.

The government plans to buy 16.2 million tonne of wheat in the current winter, crop season, up nearly 10 per cent from 14.8 million tonne procured last year.

According to government estimates, wheat output this year is seen at 73 million tonne compared with 72 million last year.