69th AGM of the Roller Flour Millers Federation of India

Address of Hon’ble Minister of State for Consumer Affairs, Food & Public Distribution at the 69th AGM of the Roller Flour Millers Federation of India on current wheat Scenario on 06.10.2009. at Hotel Le Meridian, New Delhi.

I am very happy to preside over the 69th Annual General Meeting of Roller Flour Millers Federation of India.
The roller flour milling industry is a very important constituent of the food economy and plays a vital role in ensuring availability of wheat products in the country. I am glad to know that there are over 1100 members of the Roller Flour Millers Federation of India who are engaged in processing of wheat and production and marketing of atta, maida, suzi and bran.
Government is committed to ensure food security for the nation and a number of steps have been taken in the recent years to enhance production of foodgrains, especially wheat in the country. Efforts have been made by the Government to balance the interest of the farmers as well as the consumers of foodgrains. In order to provide remunerative prices to the farmers, handsome increases in Minimum Support Price of wheat have been announced by the Government. Further, a National Food Security Mission has been launched by the Government to increase production of wheat by 8 million tones. There has been a record production of 80.58 million tones during 2009-10. Further, record procurement of wheat of 226.9 lakh tones and 253.8 lakh tones has been achieved by Government during RMS 2008-09 and RMS 2009-10 respectively.
The world food economy passed through a difficult phase during 2007-08 and 2008-09 with the international food prices touching all time high. However, due to the policy initiative taken by the Government, we were able to relatively insulate food economy from the fluctuations of the international prices of foodgrains especially wheat.
Due to insufficient rainfall during the current monsoon season, drought like conditions are prevalent in large number of States due to which production of Kharif Crops is likely to be adversely affected. It is estimated that there may be a shortfall in the production of rice in Kharif Season 2009-10. The stocks of wheat and rice in the Central Pool with the Government are quite comfortable and additional allocations are being made to the drought affected States for meeting the situation arising out of the drought.
There is likelihood increased demand for wheat as an alternate grain resource because of reduction in availability of rice. In order to increase availability of wheat in the open market, the Government has formulated a Open Market Sale Scheme (OMSS) whereby allocations would be made to State Government for sale of wheat to bulk consumers while wheat would be sold to bulk consumers by FCI through tenders. It is proposed to release upto 30 lakh tones of wheat under OMSS during October 2009 – March 2010. In the past wheat under OMSS has been sold by FCI on first-come-first-served basis at a fixed State-wise price. However, it is felt that sale through tenders is a more transparent method of releasing wheat into the open market. Further, in order to check any speculation activities, only bonafide bulk consumers of wheat have been permitted to participate in the tenders under OMSS.
Government has removed restrictions like stock holding limits on wheat to facilitate purchase of wheat by private trade during the harvesting season. It is expected that the roller flour milling industry would source its raw material during the harvesting season. It is felt that the roller flour milling industry should not depend solely on open market sales by the Government for meeting its requirements of raw material. I would expect that roller flour milling industry would rise to the occasion and make all efforts towards ensuring availability of wheat products at affordable prices in the market.
Regarding relaxation in PPQ norms to facilitate import of wheat, it is felt that adequate stocks are available with the Government and, if required, additional quantities can be released under OMSS for meeting the requirements of the milling industry.
Government has allowed export upto 6.5 lakh tones of wheat products during 2009-10. However, keeping in view the likely reduced production of foodgrains in kharif 2009-10, there is a need to conserve stocks of foodgrains with the country. Therefore, it is not found feasible to permit export of wheat at this stage (apart from the export of wheat products) already allowed by the Government.
We have been requesting the State Governments to encourage distribution of atta through PDS. The initiative taken by fortification and distribution of atta under PDS in various States is a welcome step. I am sure that with wide dissemination of the benefits accruing from distribution of fortified atta, more and more State Governments would adopt the system.
The roller flour milling industry needs constantly upgradation so that the highest milling standards followed in the world are also available in India. A formal proposal regarding a scheme for upgradation and modernization of flour mills may be submitted by the Federation so that the issue can be taken up with Ministry of Food Processing Industry.
I thank you once again for having me here and wish you all the very best.