MP, Rajasthan might buy less wheat next year

It is expected wheat purchases by Madhya Pradesh and Rajasthan in the 2015-16 season will be 1.09 million tonnes (mt) and 0.35 mt less than in 2014-15, respectively. In the past few years, the two states have been at the fore of declaring a bonus over the Centre-determined minimum support price (MSP).

According to the state-wise target of wheat to be purchased from farmers during the rabi marketing season, Madhya Pradesh is expected to purchase around six mt of wheat in 2015-16, against 7.09 mt in 2014-15. Rajasthan is likely to buy 1.8 mt, against 2.15 mt in the 2014-15 season.

The targets were fixed at a meeting of food secretaries held on Monday, an official statement said.

Wheat procurement by Punjab and Haryana is expected to be higher in 2015-16 compared to 2014-15. Punjab is expected to purchase 12 mt of wheat, against 11.64 mt in 2014-15, while Haryana is likely to buy seven mt, against 6.45 mt in 2014-15.

Last year, the government had decided to limit its wheat and rice procurement from states declaring a bonus over the MSP to the extent needed for the Public Distribution System.

The Centre has fixed a target of purchasing 30.05 mt of wheat in the 2015-16 crop marketing season starting April, marginally less compared to the target of 31 mt fixed in 2014-15 but about two mt more than the actual purchase of 28.02 mt in 2014-15.

For 2014-15 (October-September), the government had fixed a procurement target of 35.10 mt, of which 30.05 mt is expected to be in the kharif season.

While the actual rice procurement during the 2013-14 season was 31.83 mt, in the current season, the government has already procured 20.74 mt.

In the 2015-16 marketing season, India is expected to produce about 100 mt of wheat, against 96 mt this year, while rice production is expected at 88 mt in the kharif season, against 92 mt last year.