Wheat demand rising, explore export option: FCI chief to states

Ruchika M Khanna

Chandigarh, April 6

Wheat-producing states can explore new export markets following a surge in global demand for wheat in wake of the Russia-Ukraine war. Madhya Pradesh has already taken the lead by waiving the mandi fee on private wheat purchase for export, said Atish Chandra, chairman and managing director of the Food Corporation of India.

Chandra said, “The quality of Indian grain has improved and there is global acceptance of wheat produced here. Though the FCI cannot export wheat, there lies an opportunity to create long-term markets, which could be the permanent established markets. Wheat is already getting a good premium from exporters, over and above the MSP of Rs 2,015 per quintal.”

Chandra is on a visit to Punjab and Haryana to oversee the arrangements for wheat procurement.

Food and Supplies Department officials said though there had been some discussion on waiving the mandi fee for exporters, no decision had been taken yet. “This is because so far the private purchase of wheat in Punjab mandis is just five per cent of the total,” a senior officer said.

Meanwhile, Chandra said he was “very happy” with the wheat purchase arrangements in Punjab. “There has been record movement of wheat this year from the state and we are in a better position to store grains,” he said.

Punjab has a total of 178.5 lakh metric tonnes (LMT) of storage space, of which just 38 LMT is available. “We are insisting that Punjab completely does away with covered and plinth (now called transit) storage and build scientific storage space,” he said.

Chandra added that the Government of India was also happy that Punjab had come up with its action plan on crop diversification, which appeared to be sustainable and achievable.

Major Issues wih govt resolved

• The FCI resolved some major issues with a government delegation led by Secretary, Food and Supplies, Gurkirat Kirpal Singh in a meeting that lasted for three hours
• Custody and maintenance charges to be given as per the balance sheet submitted by the government. While Rs487 cr was released earlier, another Rs14 cr agreed upon for release now
• It was also decided that Punjab would do away with transit storage by September 30. Pact on settlement of storage charges of godowns under the PEG scheme also reached