The Hindu Business Line : Pawar defends fresh wheat import tender

Defending policies: The Union Agriculture Minister, Mr Sharad Pawar, with the Agriculture Secretary, Mr P.K. Mishra, during the Economic Editors Conference, in the Capital on Tuesday. –

Our Bureau

New Delhi, Nov. 13 The Union Agriculture and Food Minister, Mr Sharad Pawar, on Tuesday, defended the floating of a fresh wheat import tender on Government account, even while noting that domestic prices are ruling lower compared to last year.

Addressing the Economic Editors’ Conference here, Mr Pawar said wheat, in the wholesale market, was currently selling at around Rs 1,070 a quintal in Delhi, against over Rs 1,120 during this period last year.

But the Government was still keen to import up to 10 lakh tonnes (lt) — over and above 55 lt in 2006-07, and the 13-lt already contracted during the current fiscal — “as we have to build up a sufficient buffer stock to meet any emergency”.

The Government, he added, was committed to protect the interests of farmers, but “we cannot also bypass the interest of consumers”.

Delay in crushing

Mr Pawar also referred to the delay in starting of crushing operations by sugar mills in Uttar Pradesh (UP), which, in turn, was preventing farmers to harvest cane and sow wheat in the vacated area (Mills have refused to crush, citing high State Advised Prices of cane fixed by the UP Government and taking the matter to the Allahabad High Court. The latter has reserved its judgment, having concluded its hearings on Monday).

“We cannot take any risks and imports have to be resorted to ensure that the public distribution system is not starved of foodgrains,” Mr Pawar stated.

MMTC Ltd, on Monday, floated a global tender for import of 3.5 lt of wheat for delivery before February 10.

This is part of the total 10 lt to be imported on Government account by MMTC, State Trading Corporation of India (STC) and PEC Ltd. Asked whether there were plans to import beyond 10 lt, Mr Pawar said, “I do not think that will be required”.

Wheat is currently quoting at over $7.6 a bushel ($280 a tonne) at the Chicago Board of Trade, with the January contract at the Euronext.liffe exchange similarly ruling at €215 or $316 a tonne. Adding freight and other handling costs would translate into a landed cost of around $375 a tonne.

As on October 1, wheat stocks in the Central pool, at 101.21 lt, stood below the normative minimum buffer of 110 lt for this date. Rice stocks, at 54.89 lt, were marginally above the buffer norm of 52 lt.

Meanwhile, official rice procurement during the ongoing 2007-08 marketing season (October-September) has touched 82.49 lt as on Tuesday. This is lower than the 87.81-lt bought during the corresponding period of the 2006-07 season.

Bonus for paddy

When asked whether the Centre was planning to grant an additional bonus for paddy — over and above the already announced Rs 50 on a minimum support price of Rs 645 per quintal for common and Rs 675 for Grade ‘A’ varieties — Mr Pawar stated: “The Government has not taken any final decision on this”.