India’s wheat stock up 51% from last year

The government had 9.02 million tonnes of wheat in the central pool as on November 1, 2007 up from 5.99 million tonnes a year ago that is an increase in stock by 51%. Wheat stocks were unusually low last year due to low production and poor procurement. This year wheat stocks are enough to meet the domestic demand till March next year. The government’s current monthly wheat allocation for public distribution and other state run welfare schemes is about 1.2 million tonnes. As per this rate government will require 6 million tonnes wheat to meet the requirements till March. The government has also made an additional ad-hoc allocation of 294,000 tonnes wheat for sale to above poverty families till December, which would make the requirement to around 6.3 million tonnes. According to government norms, after wheat allocation for various welfare programmes there should be a buffer stock of 4 million tonnes as on April 1. Government has asked MMTC, PEC and State Trading Corp to import about 330,000 tonnes wheat during January to March. Though the stocks appear comfortable as of now, its rice stock that may become a matter of concern. As on November 1, 2007 rice stock was 10.65 million tonnes down from 12.51 million tonnes last year. The government has bought 8.08 million tonnes of rice from farmers till date as against 8.55 million tonnes last year. To ensure higher rice procurement the government has already banned export of non-basmati rice from the country and announced a bonus of Rs.50 a quintal in addition to minimum support price. Government may announce a second bonus to increase rice procurement.