NEW DELHI: Govt’s intervention through the open market sale of wheat not just helped ensure adequate supply of the grain and atta in the market to keep prices under check, but also lowered the FCI’s borrowings by Rs 21,000 crore.
During the last financial year, the Centre undertook the sale of a record 100 lakh tonnes as availability with flour mills was low and govt did not want to take any chances ahead of the general elections.
Govt sources said that FCI would have had to undertake borrowings of over Rs 1.7 lakh crore but ended up borrowing a little under Rs 1.4 lakh crore as it raised almost Rs 21,000 crore through open market sale of wheat and also received equity support of Rs 10,700 crore from the Centre. For FCI lower borrowings will translate into an annual interest saving of around Rs 375 crore.
FCI sources said that this year too the agency is on course to have more than sufficient stocks to intervene in the market and boost supplies, if required.
Up to Monday, it had procured 196 lakh tonnes wheat, which is 10% lower than last year’s, but more than the quantity required for distribution of free foodgrains to 80 crore poor and for other welfare requirements for the entire year.
Although arrivals in mandis are lower due to prolonged winter in many parts of north India, FCI is confident of mopping up 300-310 lakh tonnes this year with additional 100 lakh tonnes or so to be used for open market sales. Last year, govt had purchased 261 lakh tonnes.
“The arrival of wheat in Punjab and Haryana is very good and procurement in just these two states will help generate around 200 lakh tonnes for the central pool. The annual requirement of Prime Minister Garib Kalyan Anna Yojana and other welfare schemes is 186 lakh tonne,” FCI CMD Ashok K Meena said.
Officials said that wheat procurement in Madhya Pradesh has been slow so far at 34.6 lakh tonnes despite commencing MSP operations early and the state is unlikely to achieve the initial target of 80 lakh tonne. In the case of UP, wheat purchase is 5.6 lakh tonnes, a 250% jump compared to last year. This comes amid claims by agriculture ministry officials that the overall wheat production will touch 1,150 lakh tonnes against the earlier estimate of 1,120 lakh tonnes.
During the last financial year, the Centre undertook the sale of a record 100 lakh tonnes as availability with flour mills was low and govt did not want to take any chances ahead of the general elections.
Govt sources said that FCI would have had to undertake borrowings of over Rs 1.7 lakh crore but ended up borrowing a little under Rs 1.4 lakh crore as it raised almost Rs 21,000 crore through open market sale of wheat and also received equity support of Rs 10,700 crore from the Centre. For FCI lower borrowings will translate into an annual interest saving of around Rs 375 crore.
FCI sources said that this year too the agency is on course to have more than sufficient stocks to intervene in the market and boost supplies, if required.
Up to Monday, it had procured 196 lakh tonnes wheat, which is 10% lower than last year’s, but more than the quantity required for distribution of free foodgrains to 80 crore poor and for other welfare requirements for the entire year.
Although arrivals in mandis are lower due to prolonged winter in many parts of north India, FCI is confident of mopping up 300-310 lakh tonnes this year with additional 100 lakh tonnes or so to be used for open market sales. Last year, govt had purchased 261 lakh tonnes.
“The arrival of wheat in Punjab and Haryana is very good and procurement in just these two states will help generate around 200 lakh tonnes for the central pool. The annual requirement of Prime Minister Garib Kalyan Anna Yojana and other welfare schemes is 186 lakh tonne,” FCI CMD Ashok K Meena said.
Officials said that wheat procurement in Madhya Pradesh has been slow so far at 34.6 lakh tonnes despite commencing MSP operations early and the state is unlikely to achieve the initial target of 80 lakh tonne. In the case of UP, wheat purchase is 5.6 lakh tonnes, a 250% jump compared to last year. This comes amid claims by agriculture ministry officials that the overall wheat production will touch 1,150 lakh tonnes against the earlier estimate of 1,120 lakh tonnes.
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