The Government came in for sharp criticism on its decision
to import 500,000 tons of wheat from Australia. The
opposition accuses the Government of mismanagement of buffer
stocks, bad planning to procure such a large quantity on the
more expensive spot market, and lack of analysis to track
supply, demand, and pricing. Many independent trade experts
say that the Government should have allowed private
importers to import such a large quantity as it did to meet
sugar shortages. The experts project that the Government
will pay an extra 30% for the lowest quality grain. The
other issue is that the large import will arrive when
domestic farmers will be ready to sell their Rabi crop. With
a projected lower price for the imported wheat and an
abundant domestic price could create a reverse problem where
farmers may not get a fair price for their crop. The
Government buys only 1/3 of the wheat production and 2/3 is
left to market forces; this makes farmers vulnerable to a
Government-created glut.
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