NEW DELHI (CommodityOnline.com) -- Food Corporation of India (FCI) expects to procure 21.5 million tonnes this year as against the targeted 1.5 million tonnes set by the government.
FCI has so far purchased 20.5 million tonnes of wheat in 2008 from local farmers. This year's higher procurement comes on the heels of a projection of record 76.78 million tonnes of wheat. Last year's production of wheat was 75.81 million tonnes.
Agriculture Ministry sources said that the bumper crop was result of usage of better seeds and favourable weather conditions.
Lower buffer stocks had prompted the country to go for import of 7.3 million tonnes which proved to be expensive. Market sources said that the tenders floated for import had lead to soaring global prices of wheat.
Once again, Punjab and Haryana have contributed a lion's share to the procurement programme, meant to beef up the buffer stocks. In fact, Punjab's share is more than 50 per cent of the total wheat procured this year. Madhya Pradesh, Uttar Pradesh, Rajasthan 5.5 and Gujarat are the other leading producers.
Wheat dara wholesale prices went up by Rs 5 a quintal here on Wednesday mainly on increased demand from roller flourmills.
Wheat dara traded Rs 5 higher at Rs 1,060- 1,110 per quintal in the wholesale market here. Activity in other commodities including rice remained subdued, as enquiries from neighboring states were negligible due to heavy rains in the city.
Following were today's quotations per quintal: Wheat MP (deshi) 1330-1530, wheat dara (for mills) 1,060-1,110, chakki atta (delivery) 1120-1125, Chakki atta Rajdhani (10 kgs) 150, shakti bhog (10 kgs) 150, roller flour mill 1105-1110, maida 1130-1150 (90 kilos) and sooji 1200-1215 (90 kgs).
Wheat futures on CBOT closed mostly lower yesterday as the markets back-pedalled in late dealings amid pressure from the impending winter wheat harvest, traders and analysts said.
CBOT July wheat fell 6 cents to $7.78 per bushel. Kansas City Board of Trade July wheat slipped 0.75 cent to $8.30, and Minneapolis Grain Exchange July wheat shed 1.75 cents to $10.3250.
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