Centre may relax wheat quality norms
Current specifications require that grains with no more than 12% moisture are eligible to be procured by the Centre.
Procurement refers to the Centre’s purchases of cereals at federally fixed floor prices, which are then redistributed to nearly 800 million beneficiaries of the National Food Security Act 2013. (HT)
In a likely relief to farmers, the Centre may relax specifications of wheat eligible for procurement, allowing for more moisture content, as the government anticipates quality issues in grains due to torrential rains in key producer states since mid-March, a person aware of the development said, on anonymity.
Current specifications require that grains with no more than 12% moisture are eligible to be procured by the Centre. The food ministry has deployed its own teams for spot visits, the person said, while assessment of crop losses are the responsibility of states. Procurement refers to the Centre’s purchases of cereals at federally fixed floor prices, which are then redistributed to nearly 800 million beneficiaries of the National Food Security Act 2013.
Wheat output could be lower than previously estimated for the second-straight year but overall output will be ample to meet domestic needs, the person said.
On Tuesday, Ashok Kumar Meena, chief of the Food Corporation of India, the Centre’s main grain handling arm, said there has been “no impact” of the rains on wheat crops. However, there are no official estimates yet.
Reports from farmers and traders, however, point to extensive losses in some farm belts. States, such as Uttar Pradesh and Madhya Pradesh, are carrying out surveys to determine crop losses and announced compensation, ranging between ₹15000 to ₹32000 per hectare.
“Output could be lowered by up to a million tonne in the worst case but there are various estimates. That is not significant,” the person cited above said. The government has officially forecast an output of 112 million tonne, the highest ever. A fall of a million tonne, i.e an output of 111 million, translates to a decline of 0.8%. The Centre has targeted to procure 34.15 million tonne this year.
The FCI’s chief said the government has started procurement operations and is confident of fully procuring its targeted quantity of 34.15 million tonne. One of the reasons why the government will be able to procure the required quantity is that exports are currently banned.
Also, the discontinuation of the free-food programme, Pradhan Mantri Garib Kalyan Anna Yojana, started as a Covid-relief scheme, means the government’s requirement is much lower now. Last year, the government’s procurement had dropped to a 15-year-low of just 18.79 million tonne.
A heatwave in 2022 had crimped output by 2.5% to 106 million tonne, stoking shortages and prompting a ban on export of the grain as cereal prices soared.
A fresh spell of squally weather between March 30 and April 1, is expected to bring more rain to northwestern wheat-growing states, especially Rajasthan, according to the state-run India Meteorological Department.
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