Enough wheat to meet all requirements, buffer norm: Govt

The government’s annual wheat purchases for 2022-23 dipped to a 15-year low this year to 18.79 million tonnes, compared to 44 million tonnes purchased in the previous year, due to lower output.

The Union government holds sufficient wheat stock to meet requirements under a mandatory stockpile known as buffer norms, which keep changing throughout the year, and those under the National Food Security Act 2013 and other federal food-handout schemes, an official of the food and consumer affairs ministry said on Saturday.

The government’s wheat stock as on January 1, 2023, which is less than two weeks away, is estimated to be 15.9 million tonnes, higher than the buffer norm of 13.8 million tonnes applicable on that date, the official said. (PTI)

The government’s wheat stock as on January 1, 2023, which is less than two weeks away, is estimated to be 15.9 million tonnes, higher than the buffer norm of 13.8 million tonnes applicable on that date, the official said.

The government’s annual wheat purchases for 2022-23 dipped to a 15-year low this year to 18.79 million tonnes, compared to 44 million tonnes purchased in the previous year, due to lower output.

The HT on Friday had reported that wheat reserves were marginally below the buffer norm, but the government said the buffer norm was dynamic and applicable only on the date for which it was envisaged, and not the entire quarter.

“Buffer norms requirements have been envisaged for particular dates of the year — as on 1st of April, 1st of July, 1st of October and 1st of January,” the food ministry said in a release on Saturday.

Although the buffer keeps changing every quarter, the requirement to hold the necessary reserves is applicable on the particular date, the government official cited above said.

“The stock position of wheat and rice under central pool has always remained well above the buffer norms. Around 22.7 million tonnes of wheat and 20.5 million tonnes of rice were available as on 1st of October, 2022 against the respective buffer norms requirements of 20.5 million tonnes of wheat and 10.3 million tonnes of rice as on 1st of October,” the release said.

Procurement of wheat, which refers to the government’s purchases of the grain, during the last season was “on (the) lower side due to lesser production coupled with selling by farmers at prices higher than minimum support prices in the open market consequent to geo-political situation”, it said.

Enough stocks of wheat will still be available in central pool (state-held granaries) to cater to the needs of the country till the time next harvests arrive, the ministry added.

According to norms fixed by the government, wheat reserves as on October 1 need to be maintained at 20.5 million tonnes. Of this, 3 million tonnes should be held as a strategic reserve by the Food Corporation of India, while 17.5 million tonnes should be available as operational stocks for distribution to the poor under the National Food Security Act. The government said its stocks were well within these norms.

A heatwave in March this year crimped India’s wheat output for 2022-23 to 106 million tonnes from 109 million tonnes in the previous year. This came at a time of high international prices due to the Ukraine conflict, which led to large exports from India. As a result, wheat purchases by the government for the public distribution system dipped to a 15-year low.

The shortfall pushed up domestic wheat prices by 19.67% in November against 17.64% in October, latest official data showed.