 "UP logs 260% rise in wheat procurement in 2015-16")
A strong intervention by central and state governments and near-absence of private buyers due to quality issues has seen wheat procurement in Uttar Pradesh - one of India's biggest producing states, but laggard when it comes to purchases - jump over 260 per cent in 2015-16 as compared to that of 2014-15.
UP purchased around 2.26 million tonnes of wheat in 2015-16, as against just 0.62 million tonnes (mt) last year, probably one of the highest in the last few years.
The total wheat purchases across the country was estimated to be around 27.61 mt, more than last year's 27.06 mt, which itself is a commendable achievement given that production is over five mt less than last year due to unseasonal rains and hailstorm.
Data from the agriculture ministry shows that UP perhaps suffered one of the maximum damages and standing crop in almost 9.51 million hectares, mostly wheat, was damaged in the rains. Though, the procurement is lower than the targeted three mt, UP has rarely reached so close to the targeted procurement in the recent past.
Despite this, the state has managed to purchase one the highest quantities of wheat mainly due to effective cooperation between both the Centre and state governments.
Officials in the know said when Union ministers toured the hailstorm-hit areas sometime around March and April, there was stern instructions issued to FCI to improve its procurement.
The result has been that in 2015-16, FCI alone purchased over 168 per cent more wheat from the state at 163,000 tonnes as compared to 2014-15.
The UP government too chipped in empowering its cooperative societies and state civil supplies corporation to purchase as much as wheat possible from farmers.
In 2015-16, the cooperative societies in the state purchased around 957,000 tonnes of wheat as against 304,970 tonnes last year. The state civil supplies organisation bought 742,000 tonnes of wheat in 2015-16 as against 54,794 tonnes last year.
A state food and civil supplies department official said the relaxation in quality norms by the Centre came at the right time, which ensured though the crop was damaged, it did not hamper procurement. The full minimum support price paid to farmers despite relaxation in quality norms also helped, the official added.
"The message was loud and clear, that farmers in Uttar Pradesh won't be allowed to suffer for political reasons and the state government's help came in handy," an official in the Union food department said.
He said if other states like Bihar too cooperate with the Centre, much more could be done to alleviate the condition of farmers. One big reason for this spike has been the near absence of private grain traders from UP mandis this year.
The fall in quality of wheat ensured that private traders shied away from the markets, thereby making state and central agencies the lone buyers.
"UP is a prime market for us, but this time due to quality issues we have not purchased from there," said a senior official from a leading private grain trading firm.
Although UP is a major wheat producer, its contribution to the central pool is less because of its high consumption.
Private wheat traders who are usually lured towards the state due to its low taxes have instead placed import orders for around 300,000 tonnes of wheat to meet the demand of biscuit and bread makers. "A couple of ships loaded with imported wheat is due to land in the Indian coast in the next few months," said another official. The imports make one of the biggest imports by private traders of wheat in the last several years.
The Centre, meanwhile, has decided to offload the moderate quality wheat this year itself first through open market sale and thereafter through the public distribution system.
Of the over 27 mt of wheat purchases, officials estimate that around 24-25 mt is of moderate quality, though very much fit for human consumption, while the rest is of good quality.
On April1, 2015, the Centre had around 17.2 mt of wheat from the old stocks. On this, around 27 mt was purchased this year, out of which 24-25 mt is not of very good quality. The total annual wheat requirement for Public Distribution System (PDS) is around 21-22 mt, while four-five mt is offloaded through the ration shops.
"This means that much of PDS wheat requirement this year will have to be met from this 24-25 mt, which is of moderate quality," an official said.
He said the Centre had mentioned in the order in which the procurement norms were relaxed that the wheat so purchased should be given priority in disposing off as its shelf life would be normally low.
UP purchased around 2.26 million tonnes of wheat in 2015-16, as against just 0.62 million tonnes (mt) last year, probably one of the highest in the last few years.
The total wheat purchases across the country was estimated to be around 27.61 mt, more than last year's 27.06 mt, which itself is a commendable achievement given that production is over five mt less than last year due to unseasonal rains and hailstorm.
Data from the agriculture ministry shows that UP perhaps suffered one of the maximum damages and standing crop in almost 9.51 million hectares, mostly wheat, was damaged in the rains. Though, the procurement is lower than the targeted three mt, UP has rarely reached so close to the targeted procurement in the recent past.
Despite this, the state has managed to purchase one the highest quantities of wheat mainly due to effective cooperation between both the Centre and state governments.
Officials in the know said when Union ministers toured the hailstorm-hit areas sometime around March and April, there was stern instructions issued to FCI to improve its procurement.
The result has been that in 2015-16, FCI alone purchased over 168 per cent more wheat from the state at 163,000 tonnes as compared to 2014-15.
The UP government too chipped in empowering its cooperative societies and state civil supplies corporation to purchase as much as wheat possible from farmers.
In 2015-16, the cooperative societies in the state purchased around 957,000 tonnes of wheat as against 304,970 tonnes last year. The state civil supplies organisation bought 742,000 tonnes of wheat in 2015-16 as against 54,794 tonnes last year.
A state food and civil supplies department official said the relaxation in quality norms by the Centre came at the right time, which ensured though the crop was damaged, it did not hamper procurement. The full minimum support price paid to farmers despite relaxation in quality norms also helped, the official added.
"The message was loud and clear, that farmers in Uttar Pradesh won't be allowed to suffer for political reasons and the state government's help came in handy," an official in the Union food department said.
He said if other states like Bihar too cooperate with the Centre, much more could be done to alleviate the condition of farmers. One big reason for this spike has been the near absence of private grain traders from UP mandis this year.
The fall in quality of wheat ensured that private traders shied away from the markets, thereby making state and central agencies the lone buyers.
"UP is a prime market for us, but this time due to quality issues we have not purchased from there," said a senior official from a leading private grain trading firm.
Although UP is a major wheat producer, its contribution to the central pool is less because of its high consumption.
Private wheat traders who are usually lured towards the state due to its low taxes have instead placed import orders for around 300,000 tonnes of wheat to meet the demand of biscuit and bread makers. "A couple of ships loaded with imported wheat is due to land in the Indian coast in the next few months," said another official. The imports make one of the biggest imports by private traders of wheat in the last several years.
The Centre, meanwhile, has decided to offload the moderate quality wheat this year itself first through open market sale and thereafter through the public distribution system.
Of the over 27 mt of wheat purchases, officials estimate that around 24-25 mt is of moderate quality, though very much fit for human consumption, while the rest is of good quality.
On April1, 2015, the Centre had around 17.2 mt of wheat from the old stocks. On this, around 27 mt was purchased this year, out of which 24-25 mt is not of very good quality. The total annual wheat requirement for Public Distribution System (PDS) is around 21-22 mt, while four-five mt is offloaded through the ration shops.
"This means that much of PDS wheat requirement this year will have to be met from this 24-25 mt, which is of moderate quality," an official said.
He said the Centre had mentioned in the order in which the procurement norms were relaxed that the wheat so purchased should be given priority in disposing off as its shelf life would be normally low.