STC floats tender for import of 1 MT wheat

New Delhi, Apr 30 (UNI) As procurement of wheat during the current Rabi Season is comparatively low, the Government has initiated the process for importing of wheat with the State Trade Corporation (STC) floating a tender for buying one million tonnes of wheat from the international market by July.

Buying wheat from global market is also aimed at keeping the domestic price under check for curtailing the in flation, official sources said.

Even as wheat harvest in the current season is likely to touch 73.7 million tonnes, up from 69.4 million tonne last season. But the procurement of wheat in Rabi Marketing Season (RMS) 2007-08 as on April 26 was only 7.38 million tonnes and the total purchase during entire RMS is feared to remain below the last year's figure 9.2 million tonnes.

This year target of procurement is 15 million tonnes. The farmers are holding back their produce anticipating higher price than current official procurement price of Rs 850 a quintal.

The stocks of wheat in the Central Pool as on March 31, 2007 were 4.56 million tonnes.

Already a consignment of about 2,500 tonnes of wheat of the 20,000 tonnes bought by millers from Pakistan has reached the Indian shores and stocks are undergoing quality tests.

However, the STC officials are still working out the details of the tender.

Import of 55 lakh tonnes of wheat was done in 2006-07 which has improved the stock position of wheat in the central pool and the wheat stocks as on April one were more than the buffer norms of 40 lakh tonnes at the start of RMS 2007-08.

Wheat exports on private account have been banned upto December 31.

Wheat exports from Central Pool are also banned.

The wheat was made available to the States at a price of Rs 986.06 per quintal. The issue price of wheat contained a subsidy element of 20 per cent on Economic Cost which comes to Rs 1,232.30 per quintal. The state governments were asked to ensure the distribution to consumers on a no-profit-no loss basis so that the benefit of the subsidy was passed on to the consumers.

A notification titled "Wheat (Stock Declaration by companies or firms or individuals) Order 2007 has been issued under the Essential Commodities Act 1955 on March 1,2007 making it mandatory for any Company or firm or individual which purchases wheat beyond 50,000 tonnes during 2007-08 to furnish to the Central Government a return indicating the company's whereabouts , quantity of wheat purchased and quantity of wheat held in stock.

Besides this import of wheat on private account at zero duty has been permitted upto December 31,2007.

UNI