India may not fulfil the state purchase plan for wheat

09 May, 2017
India may not fulfil the state purchase plan for wheat
The Indian State Agency increases the purchased wheat for the state fund. Some reasons will prevent the completion of the ambitious plan in the current season.

In the current season the government plans to purchase 33 million tonnes of wheat from farmers compared to only 22.9 million tonnes purchased last season. Contracts have already been signed for the purchase of 25.44 million tonnes of wheat. Given the current stocks of 6.78 million tonnes available as of 1st of April, it will be possible to meet the demand and to make the necessary stocks.

Analysts say that the Indian Food Corporation will buy 4.6 to 5.0 million tonnes of wheat by the end of the campaign. That is why the quantity purchased will be below the planned 33 million tonnes. The reason for the failure is the sluggish sales of wheat in the states of Haryana, Madha-Pradesh and Rajasthan.