iGrain India - New Delhi. Encouraged by the Central Agriculture Ministry's estimate of a record production of 1120.20 lakh tonnes, the Food Ministry has set an ambitious target of purchasing 373 lakh tonnes of wheat for the current Rabi marketing, but given the current situation, the total government procurement of wheat is likely to fall short of this set target by at least 100 lakh (1 crore) tonnes.
This is a huge difference. It is also important to note that when the new Rabi marketing season formally began on April 1, the Food Corporation of India (FCI) had only 75-76 lakh tonnes of wheat stock left, which is almost equal to the minimum mandatory buffer quantity of 74.80 lakh tonnes.
This time the total government procurement of wheat is likely to reach a maximum of 27 lakh tonnes. Out of this, 184 lakh tonnes is to be used in the Pradhan Mantri Garib Kalyan Anna Yojana, while a good amount of it will also be used for other purposes. This also includes the sale of Bharat brand flour.
Apart from this, the Open Market Sale Scheme (OMSS) is also likely to be restarted. Overall, the situation of supply and availability of wheat may remain complex.
Big producers have stock of wheat but they are not willing to sell it at a lower price. As a result, the market price of wheat may improve from next month. Flour millers and traders-processors have limited stock of wheat left.