Crop with lower lustre was getting sold at a big discount to good quality crop in the market and the government buying would stop this distress sale, the trader said. The state-run agencies have procured 260,000 tonnes of wheat from farmers as on April 2, up from the last year's 46,000 tonnes, another government official said. "Buying would gain momentum in the next few weeks. It didn't pick up desired momentum because of rainfall," the official said. The government-backed Food Corporation of India (FCI) buys wheat from farmers at state-set prices to run the world's biggest food welfare programme. (Reporting by Rajendra Jadhav, editing by Ed Osmond)
Messaging: rajendra.jadhav.thomsonreuters.com@reuters.net)) (Repeats story which ran at 1420 GMT on Monday)
By Mayank Bhardwaj and Rajendra Jadhav
NEW DELHI/MUMBAI, April 4 (Reuters) - India has been
planning to relax norms to procure wheat from farmers amid
untimely rainfall and hail which damaged the crop just before
harvesting in key producing central and northern states,
government officials and traders told Reuters.
The world's second biggest wheat producer plans to buy 34.15
million tonnes of new-season wheat from local farmers to shore
up state reserves after purchases dropped 53% last year to 18.8
million tonnes because of a poor harvest.
New season wheat has started arriving on the market, but the
harvest has lost lustre in some districts because of the recent
rainfall, said a senior government official, who declined to be
named.
"We have allowed Madhya Pradesh state to procure wheat even
with 10% loss in lustre. If required we would take call for
other states and other parameters such as moisture," the
official said. The source didn't wish to be identified in line
with official rules.
The central state of Madhya Pradesh is the second biggest
producer of wheat after the northern state of Punjab.
Wheat crop has also been damaged in Punjab and Haryana
because of rainfall in the past few days and the government
would be forced to make similar changes in the procurement rules
for these states, said a New-Delhi-based trader with a global
trade house.
Punjab, Haryana and Madhya Pradesh accounted for more than
98% of the total wheat procured in 2022.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.