FCI may buy 13.5mn tonne wheat in 08-09

Citing reports of higher output this year, Food Corporation of India (FCI) is expecting to lift at least 13.5 million tonne wheat in 2008-09 - up by 2.3 million tonne over the current fiscal.

"This year (2008-09), wheat procurement from across the country by FCI is expected to be between 13.5-15 million tonne which is quite high as compared to the procurement done in earlier years," Alok Sinha, chairman and managing director, FCI, told reporters today.

"The major factors behind the increase in lifting would be higher minimum support price (MSP), good crop in Punjab, Haryana, Northern Rajasthan and Western Uttar Pradesh, and low interest of private buyers," he added.

FCI procured 9.2 million tonne wheat in 2006-07 followed by 11.2 million tonne in 2007-08.

With the procurement of 13.5 million tonne, wheat stock of the country would reach 18.8 million tonne. "From April 1 this year, we will have a stock of 5.3 million tonne. If we add the figure of expected lifting, it will reach 18.8 million tonne," Sinha said.