The Indian govt's worst nightmare is currently playing out. Weather hurting their wheat crop forcing them back out onto the global market this time for a very alrge bite out of stocks ...
-------------------------------------------------------------- India may import 3 mt of wheat 11 Feb, 2008, 0000 hrs IST, TNN
BANGALORE: Climatic changes coupled with a fall in global wheat production would see India importing close to 3 million tonne (mt) of wheat in 2008-09 even as global wheat stocks ending June 2008 would be at a 25-year low.
At the inauguration of the ‘International Seminar on Wheat & Wheat Products-Vision 2020’, Mark Samson, vice-president (south Asia) for the US Wheat Associates said, cost of cereals had risen by 50% over the last five years driven by rising demand from markets like China and India.
“As per USDA data, the number of middle class households in India stood at 75 million as of 2004. We expect the number of middle class households in Asia to rise by 156% by 2020,” he added.
Mr Samson added, for every dollar of rise in per capita income, close to 30-40% of the rise was spent on food. As a consequence of the rise in per capita income in India, the nation had an additional $25 billion which could be spent on food in 2008 while in case of Asia this figure was placed at $ 45 billion.
Union minister of state for consumer affairs, food & PDS, Akhilesh Prasad Singh said, the Centre was keen to boost wheat production by 8 mt under the National Food Security Mission (NFSM). India’s public distribution system itself required 15 mt of wheat annually.
“We will increase the number of procurement points to ensure farmers who have not been till date selling wheat to agencies like Food Corporation of India (FCI) are encouraged to do the same,” Mr Singh added.
MK Dattaraj, president of the Roller Flour Millers Association of India, said, the government had been able to increase its procurement by increasing the minimum support price (MSP) which had risen to Rs 1,000/quintal in 2007-08 from Rs 640/quintal in 2004-05. In 2005-06, the Centre paid Rs 850/quintal.
