Commodity Online NEW DELHI: Wheat procurement by the private parties has shrunken thanks to the government’s procurement rule for achieving procurement target.
According to an industry official, the private procurement of wheat was 20 lakh tonnes in the last year and it have reached at 11.7 lakh tonnes till June this year.
To keep a track on private procurement, the Centre has made it mandatory for the private trade to file declaration if they purchase more than 10,000 tons of wheat from the market.
The provision of mandatory declaration was introduced last year when the government failed to meet its procurement target of 150 lakh tons wheat in 2006.
The big private players like ITC and Cargill have procured only 11.7 lakh tonnes of wheat as compared to their purchases of over 20 lakh tonnes last year.
However, this year the Centre has been able to achieve a record procurement of 225 lakh tons on the back of higher minimum support price of Rs 1,000 per quintal and record wheat production of 78.4 million tons.
