Apart from the controversial 0% duty import of 500,000 tons of wheat, the Government is expected to import an additional 1.5-2 million tons (mt) this year. It is not clear why there is a shortfall in the quantity in stock. Production from Punjab and Uttar Pradesh is expected to be lower by 10-20% were lower because of drought and hot weather. This is surprising because almost the entire nation got what was close to a 100-year rain. The Government says that food consumption patterns have changed with a higher demand for high-value cereals products and more consumption of wheat in the South. However, it is silent on rain patterns, water storage levels, changing agricultural patterns where more land is being used for cash crops like sugar cane, changing weather patterns, and problems with storage.
The Government has also not answered why the wheat stocks in the public distribution system (PDS) dropped from 7.3 mt in February 2005 to 5mt a year later. In April 2006, the stocks are expected to plummet to 1.7mt, 2mt below the Government target of 4mt; this will be the lowest wheat stock level in 20 years. The PDS stocks, managed by the Food Corporation of India, are required for the poorest families who cannot afford to buy wheat from the open market.