The Hindu Business Line : Firms must state reasons for buying wheat

Chennai, April 15 The Centre has made it mandatory for companies and firms buying wheat from various markets this year to specify the purpose for the purchase.

The move by the Government is seen as one to further monitor the movement of grains and also keep a tab on soaring inflation.

Modified form

An official statement said the companies or firms will now have to file their returns on wheat purchase in a modified form, including details on the purpose of the purchase.

Since last year, the Centre has made it mandatory for firms buying over 10,000 tonnes to file returns with the State governments, while those buying over 25,000 tonnes will have to report it to the Centre.

Check hoarding

According to trade sources, the move is to ensure that speculators and hoarders do not buy wheat and stock them up.

Last year, some speculators had bought wheat and stored for sale later, though they ended up losing since the prices did not rise as anticipated.

Multi-national trading companies, too, had bought wheat last year for commercial operations and the current move of the Centre asking buyers to specify the purpose would have a dampening effect on the market.

MNCs not buying

The mutli-national companies, however, are not buying as aggressively now as they bought last year, trade sources said.

Meanwhile, wheat arrivals have improved in various markets across the country. It led to prices dropping by Rs 40-50 a quintal to Rs 1,075-1,110 in the New Delhi market.

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