UP procures 2 mt wheat

So far, this is roughly 500,000 tonnes more than last year's procurement level

Even though there is a severe shortage of silo bags, Uttar Pradesh has clocked almost two million tonnes (mt) in wheat procurement this season.

This is roughly 500,000 tonnes more than last year’s procurement level so far. The government had paid nearly Rs 2,500 crore to 366,000 farmers for the same.

Moreover, 1.38 mt of wheat had already been delivered to the Food Corporation of India (FCI) by the procurement agencies.

To boost procurement processes, UP had earlier allowed agents to procure wheat from farmers and they were entitled to 2.5 per cent commission.

The government had also favoured bulk purchase by private companies for maximising farmers’ income and checking distress sale. Last month, a private company was allowed to procure 50,000 tonnes of wheat.

This year, UP is targeting to procure 4.2 mt of wheat even as production is pegged at 31.5 mt. The corresponding figures of 2010 and 2011 were 27.5 mt and 29 mt respectively. Similarly, wheat acreage this year has been estimated at 9.7 million hectares (mh) compared to last year’s 9.6 mh.

A major portion of wheat is retained by farmers for personal consumption and only the remaining comes to market.

During 2011-12 crop year (July-June), UP is aiming for record food grain production of 51 mt, which would be 3.7 mt more than last year, when total production had touched 47.3 mt and the state was feted for the highest production figures.

According to the agriculture director, the government was targeting 9.26 mh acreage and 18.466 mt of kharif crop in 2012 compared to 9.078 mh and 17.593 mt last year, respectively. Likewise, the paddy acreage and production targets had been pegged at 5.947 mh and 14.559 mt respectively.