In the backdrop of bumper wheat production estimates of over 30 million tonnes (mt), the wheat procurement season started in Uttar Pradesh on Monday.
The state is targeting procurement of 4.2 mt of wheat during the April-June period. A major portion of the rabi crop is retained by farmers for personal consumption and remaining comes to the market.
The wheat minimum support price (MSP) in UP stands at Rs 1,285/quintal this year, up from Rs 1,100/quintal and Rs 1,120 during 2010 and 2011 respectively. The state has not announced any bonus above MSP yet.
During 2011, the procurement was below 3.5 mt of the targetted 4 mt. However, it was much better compared to the previous year, when procurement of wheat had fallen below 50 per cent of the targetted 4 mt.
Agricultural experts lament that the state procurement system suffers from various logistical challenges, including lack of proper storage and weighing mechanism. It is also alleged that several procurement centres function only on paper.
They also suggest that the government allowed domestic bulk purchase, so that the farmers received remunerative prices and checked distress selling.
Meanwhile, about 4,680 procurement centres had been set up in UP and the actual arrival of wheat at these centres would start from next week. The procurement centre in charges had been authorised to clear payments up to Rs 2 lakh on the spot to farmers, while payments of higher amounts would be cleared within 48 hours.
UP is India’s leading wheat producer and this year production is pegged at almost 31.5 mt. The corresponding figures for 2010 and 2011 were 27.5 mt and 29 mt respectively. Similarly, wheat acreage this year has been estimated at 9.7 million hectare (mh) vis-à-vis 9.6 mh last year.
During 2011-12 crop year (July-June), UP is looking at 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 by the Centre for the highest production figures.
