Adityanath's bonanza for farmers: UP wheat payments to touch Rs 13,000 cr

State govt plans to procure 8 MT of wheat this season as against the target of 4.5 MT last season

Uttar Pradesh's wheat farmers are likely to receive a payout amounting to Rs 13,000 crore from government agencies in the current procurement season.

This would be a massive jump of over 10 times compared to 2016, when wheat farmers received about Rs 1,220 crore from the government run procurement agencies under the previous Akhilesh Yadav regime. However, the procurement target must be met this season to breach the figure of Rs 13,000 crore. Given the stern approach adopted by Chief Minister Adityanath in securing his various agendas, it is likely that the state food and civil supplies department and other agencies would leave no stone unturned in this regard. 

Adityanath has time and again reiterated his priority of boosting agricultural growth in the state. 

So far, the farmers have already been paid about Rs 2,000 against wheat procurement, which is underway.

Last year, the state had set a target of procuring 4.5 million tonnes (MT) of wheat, of which only 0.8 MT could be procured, translating to less than 20 per cent of the target. The minimum support price (MSP), however, has also increased by about 6.5 per cent, from Rs 1,525 per quintal in 2016 to Rs 1,625 per quintal this year. (See table)

This way, the farmers were paid nearly Rs 1,220 crore for their produce by government agencies.

This year, the Adityanath-led government is targeting procurement of 8 MT through the entire procurement season ending June 15, 2017. So far, government agencies have collectively procured 1.2 MT. The wheat procurement season had started on April 1.

Earlier, the state had announced payment of Rs 10 per quintal over and above the MSP of Rs 1,625 per quintal against loading and unloading charges to keep farmers in good humour.

In the current rabi season, the state has produced about 34 MT of wheat, which also means that the state government is targeting to procure less than 25 percent of the total output this year.

Farmers also sell their produce in the open market depending upon their convenience and price differential. Some of the produce is also retained for private consumption.

Higher MSP helps farmers fetch remunerative prices in the open market and it is one of the basic objectives of the system. Government agencies procure wheat for the public distribution system and midday meal scheme.

Meanwhile, the state has established about 5,000 procurement centres. The state lacks adequate warehousing facilities as well. Uttar Pradesh's food and civil supplies department claimed that there was no scarcity of storage space and that additional storage capacity would be sourced from private firms, central agencies and the Food Corporation of India if needed.

Wheat procurement in UP over the years

Year	Procurement target (million tonnes)	Actual procurement (million tonnes)	MSP (per quintal)	Total payment (crore)
2013	6	0.7	Rs 1,350	Rs 945
2014	4.5	0.6	Rs 1,400	Rs 840
2015	3	2.2	Rs 1,450	Rs 3,190
2016	4.5	0.8	Rs 1,525	Rs 1,220
2017	8	Procurement underway	Rs 1,625	*Rs 13,000

*Calculated on the premise that UP achieves its 2017 procurement target