In Commodity News 27/05/2015
After procuring 7.2 million tonnes (MT) during this ‘No Bonus’ wheat procurement season, Madhya Pradesh is expecting to procure 7.5 MT wheat by the end of Tuesday, when the season comes to an end.
Bhopal district has procured 1.5 MT, the highest, while tribal-dominated Shahdol district has procured only 40,000 MT at a minimum support price of Rs 1,450 per quintal.
“We may touch 7.5 MT but procurement has come to an end in almost all districts. Few districts have demanded the procurement process to be extended for two-three days. But our expectations are that we will procure 7.3 MT,” Ashok Barnwal, principal secretary, state food and civil supplies department, told Business Standard.
The state government had faced allegations in the past years that state inflates its wheat procurement data since farmers from neighbouring states flock into Madhya Pradesh in anticipation of better prices, particularly the Rs 150 per quintal bonus. “We have procured almost similar quantity of wheat without offering any bonus this season,” Barnwal pointed out.
The state started offering bonus on wheat since 2010-11 when it procured 3.5 MT. It procured 5 MT during 2011-12, 8.5 MT in 2012-13, 6.3 MT during 2013-14 and 7.2 MT during 2014-15.
“If you see last year’s data, it reflects we have procured similar quantity (or) even better than previous years without offering any bonus,” he said.
Madhya Pradesh needs 2.8 MT of wheat for its own public distribution system. The rest is supplied to states like Maharashtra and Gujarat. Private players like Unilever, Cargill, ITC etc., also procure wheat but in minuscule quantity.
State government had expected 20 MT wheat production this year against 17.2 MT produced last year though unseasonal rains, hailstorm and adverse weather conditions have affected the harvest. This year the state government disbursed relief of Rs 395 crore to hailstorm-affected farmers across the state.
The state also grows one of the finest varieties ‘Sharbati’ which is high in protein followed by ‘Durum’ which is exported to pasta making countries.
