'Rabi wheat procurement likely to cross estimated 34 million tonnes'

Wheat procurement in the 2023-24 rabi marketing season may be higher than the estimated 34.1 million tonnes, but the quality of the grain may suffer because of unseasonal rains in some areas, Food Corp. of India chairman Ashok Meena said in an interview.

- Puja Das

 

The open market sales scheme (OMSS), under which the Centre sells foodgrain to keep prices down, the continuing export ban and likely higher production in 2022-23 (July-June) will increase wheat supplies, he said.

“This year, we will have more supply due to likely 5 mt more production than last year and as there is a ban imposed on wheat export, we will have additional 7 mt wheat available in the supply chain. This not only signals that there is a chance for the government to procure more wheat than estimated but also indicates that prices will come down once the 3.3 mt wheat offloaded under OMSS arrives in the market. "

However, the quality of wheat is expected to be affected due to unseasonal downpour in March. This may result in higher procurement of the lower grade ‘under reduced specification’ (URS) wheat than the normal ‘fair average quality’ (FAQ) variety. Edited excerpts:

Will procurement be delayed by rainfall in wheat-growing states?

The procurement started in Madhya Pradesh on March 20, and there will be no delay in procurement in other states. Procurement of wheat by FCI will kick off in Punjab, Haryana, Rajasthan and Uttar Pradesh from 1 April as scheduled.

Will recent heavy rainfall and hailstorm in some regions weigh on wheat production?