23rd September, 2003
Ministry of Consumer Affairs, Food & Public Distribution  


WHEAT PROCUREMENT BY PRIVATE TRADE SUGGESTED


Shri Sharad Yadav, Minister of Consumer Affairs, Food and Public Distribution has suggested participation of private trade in the procurement of wheat to instil a spirit of competitiveness in the system. This, he said would eventually result in the reduction of economic cost of wheat and a consequent reduction in the food subsidy besides ensuring better availability of wheat for the milling industry. Addressing the 63rd Annual General Meeting of Roller Flour Mills Federation of India here today the Minister said that monopoly procurement by central and state agencies had led to certain inherent inefficiency in the system, and pointed out the need for extending procurement operations to more states.

Shri Yadav assured the members of Roller Flour Mills Federation that the central pool has sufficient stock of wheat to meet the requirements of domestic consumption and conversion to wheat products. Under Open Market Sale Scheme (Domestic) for sale of wheat to indigenous industry a total of over 104 lakh MTs of wheat has been sold during the last two years and the bulk of which had been used by the flour mills. However, the Roller Flour Mills in some regions might have been facing problems in getting their stocks due to the increased stocking of foodgrains for TPDS and other foodgrains based welfare schemes in every state of the country; the Minister admitted.

On export of wheat products Shri Yadav assured the exporters to examine the possibility of bringing parity in prices of wheat issued for export of wheat as such and for export as wheat products. At present wheat product exporters are being issued wheat at a rate higher than that of wheat exporters. However, as compared to wheat exporters who are required to submit export documents for 99 per cent of the quantity lifted from FCI the wheat product exporters are required to submit export documents only for 65 per cent of the quantity lifted from the central pool. Further, wheat product exporters are issued wheat on " Net Weight Basis" a facility which is not available to the exporters of wheat. He also assured the Roller Flour Mills that despite export of foodgrains the central pool had sufficient stock and availability of foodgrains was never a problem in tackling the severe drought which the country witnessed last year. He congratulated the exporters for making a dent in the international market for wheat product exports by exporting 7.5 lakh tonnes of wheat products last year to countries like Sri Lanka , Indonesia, Egypt, South Africa and Middle East.