New guidelines to give fillip to procurement

The recent unseasonal rains and hailstorms have damaged wheat crop in Punjab

Vijay C Roy Chandigarh
Last Updated : Apr 23 2015 | 9:44 PM IST
Punjab farmers would be given full minimum support price (MSP) of their harvest and the value cut would not be applied, the state government has said in a press statement issued on Wednesday.

The Centre's decision to relax the quality norms for procurement of wheat in Punjab and the state government's announcement to bear the value cut imposed by the Centre on broken, shrivelled and lusterless grain, will give fillip to the tardy wheat procurement in the state.

The recent unseasonal rains and hailstorms have damaged wheat crop in Punjab. Also, high moisture content in the crop further led to a tepid response by state and central agencies, resulting in non-purchase of the crop. According to the state agricultural marketing board, out of the total arrival of 2.1 million tonnes of wheat in different mandis of the state till Wednesday, only 814,000 tonnes has been procured.

According to the revised norms, wheat with up to 10 per cent shrivelled grains will be bought at an MSP of Rs 1,450 a quintal. Further, Rs 3.63 a quintal will be cut on six-eight per cent shrivelled grain and Rs 7.25 a quintal on eight-10 per cent.

According to the norms, Procurement of semi-damaged grains up to six per cent are allowed, while damaged not being more than four per cent. The state government also said no farmer would be allowed to suffer due to vagaries of weather and announced the state government would bear the value cut due to broken, shriveled and lusterless grain as announced by the relaxation in uniform norms for procurement of wheat for 2015-16.

Earlier, citing the crisis being faced by farmers due to unseasonal rainfall and hailstorms in the state, the state government wrote a letter to the ministry of consumer affairs, food and public distribution, seeking relaxation in uniform specifications for procuring wheat on the lines of Haryana.

The Food Corporation of India, along with state government agencies, is targeting to procure 12.5 million tonnes of wheat from Punjab. Last year, the total wheat purchased by different agencies and private traders was about 12 million tonnes. The total area under wheat in Punjab during the current procurement season is over 3.5 million hectares and the anticipated production is about 15 million tonnes.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Apr 23 2015 | 8:29 PM IST

Next Story