India’s wheat needs top priority, export policy changes later: FCI Chief AK Meena
Meena declined to speculate on the projected unfavourable weather conditions and stated that internal estimates indicate normal wheat procurement this year of 300-400 lakh million tonnes (LMT).
The Chairman of the Food Corporation of India (FCI), A.K. Meena, on Thursday, February 23, said meeting India's domestic needs is the top priority and there is no question of relaxing the wheat export policy until the procurement operations are completed, when asked about the government's wheat procurement operations .
Meena also clarified that procurement operations usually take place in April and May, and there is no possibility of easing the wheat export policy until after these operations.
He revealed that 18 lakh metric tonnes (LMT) of wheat has already been sold by the FCI through the Open Market Sale Scheme (OMSS), out of which 11 LMT has been lifted by the buyers.
He also expressed confidence in the upcoming wheat procurement season, stating that he expects good procurement to take place next year.
The FCI has sold 18.05 LMT of wheat since February 1 under the OMSS. Meena said they will announce a tender for the fourth e-auction tomorrow to offer over 11 LMT of wheat to further improve availability.
Meena also revealed that the model mandi prices have gone down to Rs 2,200-2,300 per quintal and the OMSS has received a good response. The highest rate quoted in the wheat e-auction in Uttar Pradesh is now down to Rs 2,150 per quintal from Rs 2,900. However, he noted that the change in wholesale prices of wheat takes a few days to be reflected in the retail price.
During the e-auction, 80 bidders bought 500-1,000 MT wheat, while six bidders bought over 3,000 MT. Meena expressed optimism about the prospects for wheat procurement, as the area sown under wheat has increased across India.
However, he declined to speculate on the weather conditions and stated that internal estimates indicate normal wheat procurement this year of 300-400 LMT. He expects 113 LMT to be the closing balance of wheat stocks on April 1 — buffer stocks norms mandate 75 LMT.
In addition to wheat, the FCI has also procured over 700 LMT of rice, with contributions from 96 lakh farmers. Meena assured that there are enough stocks of rice in hand.
(Edited by : Shoma Bhattacharjee)
First Published: Feb 23, 2023 6:49 PM IST
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