MP likely to miss wheat procurement target again

Most of the quantity procured is kept under kachha cap, triggering a loss of nearly 10-12%, against state claims of 11.2 mn storage capacity

Against expectations of 8.5 million tonne, Madhya Pradesh has so far procured 6 million tonne of wheat this season which is now petering out.

Most of the quantity of the commodity procured is kept under kachha cap thereby triggering a loss of nearly 10-12 percent, against state claims of 11.2 million storage capacity.

The procurement process would come to an end at May 25. State had already revised its wheat production estimates downwards from 19.2 million tonne to 17 million tonne this year. During, March-April it estimated 11 million tonne and revised for another time to 10 million ton. But later it revised to 8.5 million ton due to unseasonal rains. As many as 30000 villages have been affected badly due to rains and wheat crop suffered a heavy loss in most areas.

Also, private players preempted wheat buying as millers faced shortage of the commodity last year.  

“State civil supplies corporation has procured 4.2 million tonne while MP Marketing Federation Cooperative Limited has procured 1.8 million tonne of wheat at Rs  1500 per quintal with minimum support price of Rs  1,400 per quintal and Rs  150 state bonus on it,” a highly-placed official in agriculture department said.

Madhya Pradesh emerged as a new wheat growing state with a procurement record of 8.5 million ton of the total 12.7 million tonne production but during the subsequent year market players triggered a and restricted the government agencies at 6.6 million tonne at various procurement centers. Procurement process require Rs  10,000 crore against which state has this year made arrangements of a credit limit of Rs  18,690 crore with Reserve Bank of India so that it can pay farmers.