Sluggish wheat purchases in some states may hinder achievement of Centre’s procurement target

This, contempt the gait of procurement picking up successful caller weeks, with the shortage shrinking to 3% arsenic of 6 May from 25% astir a fortnight ago. As of Monday, the authorities could procure astir 23.8 mt successful the 2024-25 rabi play against 24.5 mt during the corresponding play past year. 

Also work | Union Cabinet approves NPK fertiliser subsidy for 2023-24 rabi season

The rabi play runs from October to March, and procurement happens from April to May. However, this time, the Centre decided to let states to procure depending connected the accomplishment of the harvest successful the market. In astir states, wheat arrivals statesman successful the archetypal fortnight of March.

The people and status

India has targeted to procure astir 37 cardinal tonnes of wheat this season, according to information from Food Corporation of India (FCI). However, nutrient and nationalist organisation caput Sanjeev Chopra sees it to beryllium 31 mt, portion helium was hopeful that the authorities would conscionable this target, helium added, “Taking the worst-case scenario, wheat procurement could beryllium 26 mt, which we did past year. This would beryllium capable to conscionable the NFSA (National Food Security Act) request of 18-20 mt and marketplace interventions of 14 mt. We had an opening equilibrium of 8 mt."

Also work |  Govt mandates play wheat banal reporting to curb hoarding

About 19.9 mt wheat is presently disposable successful the cardinal excavation against the buffer norm of 7.46 mt arsenic of 1 April.

The 2023-24 rabi play saw the authorities procuring 26.2 mt of wheat against a people of 34.15 mt. The erstwhile season, it had procured 18.8 mt against a people of 44.4 mt. If the people is missed this year, it would beryllium for the 3rd twelvemonth successful succession. About 19.9 mt wheat is presently disposable successful the cardinal excavation against the buffer norm of 7.46 mt arsenic of 1 April.

What's holding up procurement

“There was unseasonal rainfall successful Punjab, Haryana and parts of Rajasthan. As a result, moisture contented successful wheat went high. Therefore, farmers were advised to fto the harvest mature and not harvest it. Harvest it erstwhile the upwind improves. Harvesting is delayed by 10-15 days successful these states," Chopra told Mint. “Higher terms offerings by backstage traders successful immoderate states similar MP (Madhya Pradesh), Rajasthan and Bihar are different reason. We bash not resent farmers getting amended prices. It is bully for farmers to get remunerative prices successful the unfastened market."

Also work |  India 2024 wheat output astatine 106 cardinal tonnes to autumn abbreviated of govt estimate: Survey

"The wheat banal with FCI falling to the buffer level this twelvemonth has not impacted the proviso broadside arsenic OMSS (open marketplace merchantability scheme) organisation was not needed aft February. Besides, the banal is not truthful debased arsenic to adversely interaction the organisation nether payment schemes," said G.K. Sood, a workplace expert. "Target is not important. What is important is whether the quantity procured volition conscionable the request for FCI stocks going forward. This year’s harvest being astir 5 cardinal tonnes higher, with procurement being astatine the aforesaid level arsenic the past year, the pipeline stocks are expected to person improved. There lies the comfort."

Below target

A elder authoritative with the FCI told Mint earlier that wheat procurement successful the existent play successful Rajasthan could beryllium astir 1.5 mt against the people of 2 mt, and 2 mt from Uttar Pradesh against the people of 6 mt. Procurement successful Madhya Pradesh, Punjab, Haryana and Bihar whitethorn not beryllium little than 8 mt, 13 mt, 7 mt and 2 mt, respectively, connected par with their targets.

Wheat acquisition has truthful acold been 710,718 tonnes successful Uttar Pradesh against the erstwhile year’s 151,857 tonnes. The authorities could acquisition 612,304 tonnes from Rajasthan compared to past season’s 224,205 tonnes and 8,278 tonnes from Bihar against 379 tonnes successful the erstwhile year. Last year, full procurement successful the rabi play was a debased 220,000 tonnes successful UP, 438,000 successful Rajasthan and 1,000 tonnes successful Bihar.

Action program on

The higher procurement successful the existent play successful these states is owed to debased acquisition successful the erstwhile season, driving the authorities to hole an enactment program that includes pre-registration of farmers, timely payments and run to make awareness.

Also work |  FCI’s wheat & atom acquisition slows connected little arrival, moisture, steadfast prices

“Procurement successful UP (Uttar Pradesh) is progressing; it is amended than the erstwhile year. However, determination is scope for improvement," said Chopra, adding that successful the lawsuit of Bihar, procurement centres were not equipped. "They said farmers are going to backstage traders due to the fact that they are getting wealth successful currency astatine spot. I americium doubtful whether we volition person the benignant of show we expected successful Bihar. Additionally, this twelvemonth we are trying to marque payments to farmers wrong 48 hours. I’d accidental it is happening successful 70-80% of cases. In the remaining cases, it is not happening for assorted reasons."

Wheat accumulation successful India, the world's second-largest wheat shaper and user aft China, is estimated to beryllium marginally higher on-year astatine 112 mt (as per the government), and little astatine 105.7 mt (according to a survey of the lasting crop, conducted by the Roller Flour Millers’ Federation of India and Agriwatch).

Unlock a satellite of Benefits! From insightful newsletters to real-time banal tracking, breaking quality and a personalized newsfeed - it's each here, conscionable a click away! Login Now!

Published: 07 May 2024, 05:46 PM IST