It is view is based on
the 2023-24 purchases, which was 40 per cent higher than the previous season
despite higher inflation of 17 per cent just before the harvest began. The
procurement by the Food Corporation of India and other agencies dropped to 16-year
low of 188 lakh tonnes (lt) in 2022-23.
“The wheat inflation
was much higher during January-March of 2023 compared to the current rate of
increase. Still, the procurement crossed 260 lt. Besides, the bonus (over and above the MSP) announced by States such as
Madhya Pradesh and Rajasthan may also help in purchasing a good amount of wheat
in coming season,” said an official source.
Union Food Minister
Pralhad Joshi has held two rounds of discussions with food ministers of five
key producing States — Uttar Pradesh, Madhya Pradesh, Bihar, Gujarat and
Rajasthan. Union Food Secretary Sanjeev
Chopra is likely to hold a meeting next month with officials of all
wheat-growing States to finalise the estimate of procurement and prepare an
action plan, sources said.
Last year, these five
States had a combined share of 26 per cent of 266.05 lt of wheat procured by
the FCI. The government set a target to buy 162.1 lt from these five States in
2024. However, it bought nearly 70 meeting 43 per cent of target.
The Centre has asked these five governments to
procure at least the quantity required under the public distribution system in
their respective State. The MSP of wheat has
been set at ₹2,425/quintal, 6.6 per cent higher than last year. The all India
average retail price of wheat is ₹35.23/kg this month, which is 4.4 per cent
higher than ₹33.76/kg a year ago and that of atta (wheat flour) ₹40.28/kg, up
by 3.5 per cent from ₹38.93/kg, according to data from the Consumer Affairs
Ministry. Officials said the current wheat inflation is even less than the hike
given in MSP. In January, monthly retail inflation in wheat was 17.1 per cent
and in atta was 19.8 per cent while in February, 2023, it was 16.9 per cent in
wheat and 19.2 per cent in atta (wheat flour). But in March 2023, wheat inflation
dropped to 12.3 per cent and in atta, it slipped to 15.8 per cent.
“As the new wheat crop
starts arriving in mandis from March, one has to wait if prices will cool down
from the current level and even if there is a marginal drop, the government may
hope for a good procurement,” an industry expert said and added that the next
1-2 months are critical for the crop due to the possibility of higher than
normal temperature.
Sowing data show that wheat acreage was 1.38 per
cent higher at a record 324.38 lakh hectares (lh) in the current rabi season
(until January 27) compared with 315.63 lh a year ago. The acreage was 318.33 lh last year. The
production target has been set at 115 million tonnes (mt) in current year, up
from a record 113.29 mt during the 2023-24 crop year (July-June).