Centre relaxes wheat procurement norms in Punjab & Haryana

To push procurement of wheat in Punjab and Haryana, the two states which together account for over 60 per cent of India's total annual wheat purchase, the Centre has relaxed the quality norms for procurement to enable farmers sell their damaged grain to state-run procurement agencies including Food Corporation of India (FCI).

However, the grains will be purchased after lowering their value depending upon the damage.

Punjab government though has decided to compensate the farmers for the drop in value from its resources so that farmers get the full Minimum Support Price (MSP). The MSP of wheat for 2015-16 crop season has been fixed at Rs 1,450 per quintal.

According to an official statement, in Punjab, the Centre would purchase upto 10 per cent of broken and shriveled grains as against the existing norm of six per cent.

However, it will deduct Rs 3.62 per quintal for wheat having shriveled or broken grains between 6 to 8 per cent and in case the quantum of broken or shriveled grains is between 8-10 per cent an amount of Rs 7.25 will be deducted from the MSP.

For wheat in which more than 10 per cent but less than 50 per cent of grains have lost its luster in the recent rains, an amount of Rs 3.63 per quintal will be deducted from the MSP.

For Haryana, Centre has decided to purchase upto 90 per cent luster lost wheat, but after deducting a value of Rs 3.62 per quintal from the MSP.

As per an agriculture ministry assessment of April 7, the recent unseasonal rains and hailstorms has damaged standing wheat crop in 1.75 million hectares of land in Haryana and 0.25 million in Punjab.

Procurement of wheat in these two states has been less than half of last year's level in the first 20 days of the 2015-16 crop marketing season.

In Punjab, the Food Corporation of India, along with state government agencies, is targeting to procure 12.5 million tonnes of wheat this year. Last year, the total wheat purchased by different agencies and private traders was about 12 million tonnes in the state.

The total area under wheat in Punjab during the current procurement season is over 3.5 million hectares and the expected production is about 15 million tonnes. EoM