Wheat procurement picks up; concern over storage by Gargi Parsai

Procurement of wheat for the public distribution system on Friday crossed the last year’s level although it remained lower in Punjab and Uttar Pradesh, compared to the corresponding period last year, due to late arrival or delayed reporting.

As per the latest data released by the Centre, the Food Corporation of India and State agencies had procured 20.92 million tonnes of wheat compared to 20.61 million tonnes procured last year in the corresponding period. Altogether, mandi arrivals of wheat at 22.30 million tonnes are reported to be slightly lower than 22.64 million tonnes last year, ostensibly due to the delayed reporting of data by Uttar Pradesh.

So far Punjab has contributed to the central pool 9.94 million tonnes, against 10 million tonnes in the corresponding period last year. Uttar Pradesh has procured 7.3 lakh tonnes against 9 lakh tonnes.

Haryana’s procurement at 6.26 million tonnes stands at the same level as last year at this time. Madhya Pradesh, however, has procured 3.26 million tonnes. This is higher than 2.89 million tonnes procured last year.

Agencies in Rajasthan have procured 6.1 lakh tonnes, against 4.1 lakh tonnes at this time last year.

Punjab leads the purchase of wheat, followed by Haryana and Madhya Pradesh.

Concern about proper storage, however, remains as godowns are stocked with previous supplies. The government hopes to procure 26.2 million tonnes in the 2011-12 rabi marketing season on the back of an estimated wheat output of 84.27 million tonnes.

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