India wheat steady; eyes government stocks, rice

Aug 21 2009 2:58PM

MUMBAI, Aug 21 (Reuters) - Indian wheat futures were steady on Friday as expectations the government will sell stocks from its granaries in the domestic market offset concerns of lower rice output, analysts said.

At 2:56 p.m, September futures contract on National Commodity and Derivatives Exchange was at 1,167.6 rupees per 100 kg, down 0.24 percent.

"Government talk of releasing 3 million tonnes of wheat weighed on the sentiment," said an analyst with Sharekhan Commodities.

Wheat stocks stood at 32.92 million tonnes as on July 1 almost double the required buffer norm of 17 million tonnes.

Sufficient stock of wheat and rice in the Country 16:19 IST RAJYA SABHA As against annual requirement of foodgrains as per existing level of allocations for TPDS, other welfare schemes, calamity relief, etc. of about 52 million tonnes, the stock position of foodgrains in the Central Pool as on 01.07.2009 was 329.22 lakh tons of wheat and 196.16 lakh tonnes of rice. Stocks of foodgrains in the Central Pool are formed by the quantities of rice, wheat and coarse grains procured during the Kharif and Rabi procurement years. Allocation of foodgrains under TPDS are made for every month. Inflow and outflow of stocks in the Central Pool is a continuous process all over the year. Government is carrying out procurement of rice, wheat and coarse grains for the Central Pool under MSP based operations during relevant marketing seasons. As stated above, allocations have been issued under Targeted Public Distribution System, other welfare schemes, for calamity relief, etc. This information was given by Prof. K. V. Thomas Minister of State for Agriculture, Consumer Affairs, Food & Public Distribution in written reply to a question in the Rajya Sabha today. MP:MR:CP:stock(7..7.2009)

India, as per latest data, has procured 25.13 million tonnes of wheat in 2009/10 marketing year that began in April, up from 22.6 million tonnes in the previous year.

Prices of the grain have been moving up in the last few days on hopes of higher demand driven by a drop in rice sowing due to deficient monsoon rains, analysts said.

As per latest data, paddy sowing area fell to 24.74 million hectares from 30.45 million hectares because of weak monsoon rains.

Area under pulses more than last year; coarse cereals normal;paddy down 18:5 IST There is further progress in kharif sowing as per data received from States. While area under pulses is more than that of last year, acreage of paddy is down. Acreage of coarse cereals is normal. The cropped areas this year and last year for major kharif crops as on 12th August are as follows: lakh* hectare Crop This year’s area [as on 12th August, 2009] Last year’s area [as on 12 th August 2008} Paddy 247.39 304.49 Jowar 27.42 26.39 Bajra 67.30 67.37 Maize 67.55 65.87 Total of coarse cereals 174.19 175.36 Arhar 31.65 28.37 Urd 19.54 18.40 Moong 22.31 20.76 Total Pulses 88.24 82.25 Groundnut 36.91 48.19 Soybean 93.77 92.78 Total Oilseeds 152.47 164.15 Cotton 93.69 82.88 Sugarcane 42.50 43.79 Jute 6.89 7.06 MP: MR:CP:weatherwatch(13.8.2009)