No clear indication from the government on the issue of wheat imports
06-Jun-2024 09:18 PM
New Delhi. However, for the last few weeks, the industry-trade sector has been emphasizing the need to import wheat from abroad as there is very little arrival of it in the mandis and the sale of wheat has not been started again under the Open Market Sale Scheme (OMSS). But no clear indication has been given by the government on any issue.
Surprisingly, the Union Agriculture Ministry in its third advance estimate has expressed the possibility of domestic wheat reaching an all-time high of 1129 lakh tonnes in the Rabi season of 2023-24, which is much higher than the second advance estimate figure of 1120.20 lakh tonnes and the reviewed production of 1105.56 lakh tonnes of 2022-23 season.
Now the question arises that if there has been a record production of more than 1129 lakh tonnes of wheat in the country, then where did it go? Government procurement is stuck between 264-265 lakh tonnes, which is only 2-3 lakh tonnes more than the total procurement of 262 lakh tonnes in the last Rabi marketing season.
When wheat is being purchased from farmers in Madhya Pradesh and Rajasthan at the rate of Rs 2400 per quintal, then why are the farmers there hesitant to sell their produce. Do the farmers have such a strong capacity that they can keep the stock of more than 8.5 crore tonnes of wheat safe with them for a long time.
Once again a new coalition government is going to be formed at the Center under the leadership of BJP, but this time the situation is different compared to the last two terms.
In the general elections of 2024 and 2019, BJP got a clear majority, so there was no pressure on the government from the allies. On the contrary, BJP did not get a clear majority in the 2024 elections and hence the government will have to take the support of the allies.
If the pressure of these parties increases, then the government may be forced to take a positive decision on wheat import. There is currently an import duty of 40 percent on wheat.