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LATEST NEWS UPDATES | Mr. Modi, How are you Going to Handle Wheat? -Subodh Varma

Mr. Modi, How are you Going to Handle Wheat? -Subodh Varma

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published Published on Jul 17, 2022   modified Modified on Jul 18, 2022

-Newsclick.in

With wheat stocks at a 14-year low and procurement at a 20-year low, how is the ration system going to deliver this staple to crores of people?

At the end of June this year, government procurement of wheat was about 188 lakh tonnes, dramatically down by 57% from last year’s 433 lakh tonnes, as per official figures. This is the lowest procurement amount in the last two decades. It was back in 2002 that wheat procurement had been lower at 164 lakh tonnes. But two decades ago population would have been much lower.

Linked to this is another disturbing fact: government wheat stocks are at a 14-year low of 311 lakh tonnes. The last time stocks were lower than this was in 2008, when only 241 lakh tonnes were left in the government warehouses in June. That, of course, was a bad monsoon year, so production had been severely affected.

The low procurement and stock position, shown in the chart below, should have set alarm bells ringing in New Delhi by now. As per the latest data, on July 1, 2022, the wheat stock had dipped to 285 lakh tonnes, just 10 lakh tonnes more than the statutory stocking norm of 275.8 lakh tonnes for July. This has grave implications for the coming months; should there be a natural calamity or sudden need for wheat to be distributed, stocks would be perilously low. Then, there is the question of distribution through the ration system (PDS). How is that going to be fulfilled?

However, aside from last-minute wheat export ban in May, followed by wheat flour (atta) and other products limitation in June, the only action taken by the government was to start distributing rice instead of wheat in the public distribution system, causing discontent among wheat consuming states.

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Newsclick.in, 17 July, 2022, https://www.newsclick.in/mr-modi-how-you-going-handle-wheat


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