As we have ample stocks, no need for wheat imports now: DGFT

like buy wheat For the current season which is coming to an end, the government is optimistic that there is enough stock with farmers and traders to meet domestic demand and it is unlikely that there will be a need for imports.

“So far, no need for import has been felt. The production has been good. Since there is a ban in place, it means there is enough stock from farmers and traders. FCI (Food Corporation of India) has Also enough stock. business line.

stock vs demand

Purchases of wheat in the current spring season reached 26.2 million tons as of June 6, which already exceeded last year’s total purchases of 18.8 metric tons. Food Corporation of India (FCI) wheat stocks improved to 31.2 metric tons as of May 30 from 29.03 metric tons as of May 1, while the government’s annual requirement for public distribution and other welfare schemes is 18.4 million tons.

Also read: Officials say the ban is on wheat imports and is unlikely to be exported soon

Despite the early rains, the main factors contributing to the healthy procurement this year were the granting of government relaxation in the quality specifications of rain-affected wheat, opening of purchase centers at village and panchayat level, implementation of procurement through cooperative societies, gram. panchayat and ArhatiasThe Ministry of Food said last week in a statement, allowing the involvement of military organizations in procurement.

However, given the mandi prices prevailing in Uttar Pradesh and Bihar during the current procurement season, as farmers used to sell for less than minimum support price (MSP), many traders question the government’s estimate of record production of about 112 metric tons. The Roller Flour Millers Association of India, which hired a private agency, pegged production at approximately 103 metric tons.

Also read: Wheat prices 1.5% above MSP in APMC yards as farmers in UP, Bihar benefit

“just rumors”

Another official affiliated with the order said that some traders may be spreading rumors about a possible shortage of wheat and the need to import because they want to increase the price of the wheat stocks they have accumulated.

“It is hard to believe that any seller of inventory would buy at a higher price. If production had been at a record level, prices would not have gone above the MSP when exports were banned, and there is no possibility of opening the window this year,” said one trader, with current fees. At $290 a ton on board, the wheat is unlikely to be imported even in southern ports.Any decision on import should be duty-free, he added, and may help calm sentiment.

Pan-India retail average price of wheat It declined from a peak of 33.21 rupees/kg in February to 31.27 rupees/kg in May, but is still 6.5 percent higher than last year (May 2022). Data from the Ministry of Consumer Affairs showed that the prices of atta (wheat flour) were 10.5 percent higher at $36.42/kg last month compared to last year, although it was down from the record high of $37.8/kg in February this year.