MP civil supplies back in wheat trading from next yr

To check hoarding and corporate monopoly in wheat procurement in Madhya Pradesh, the state civil supplies corporation will enter into wheat trading from next year.

For the past two years, the corporation has not been procuring wheat or any other commodity. As a result, hoarding has been reported across the state. Corporate houses like Hindustan Lever, ITC, Cargill, and other companies have procured 500,000 tonnes of wheat this year.

Wheat prices touched a maximum of Rs 3,500 per quintal at main wheat trading mandis namely Vidisha, Ashta and Sehore this year, against the minimum support price of Rs 650 (fixed by the Centre) per quintal. The state government has announced an additional Rs 10 bonus on it.

"We will procure at least 200,000 tonnes of wheat by the next rabi season so that we can release quota whenever prices soar," said GK Shrivastava, managing director of the MP State Civil Supplies Corporation, adding, "Normally, we keep vigilance on minimum support price but from next year, we will be able to ensure better price for farmers."

Madhya Pradesh is the third-largest producer of wheat. The high-yield variety like Sharbati contains protein and is in great demand in flour-, biscuit- and pasta-making companies. Despite a number of attempts, exports of high-protein variety Durum failed to take off. The Durum variety is in good demand in the global market.

The previous government allowed private companies to procure food grains and other commodities outside mandis. The state produces approximately 7-7.2 million tonnes of wheat and cultivates 4 million hectares.

Good rain has brightened the prospects of wheat production this year, which, according to an agri-expert, might touch 7.5 million tonnes with the yield touching 2,000 kg per hectare from the existing 1,867 kg per hectare.

The state government is also formulating a new agri policy, which will mainly focus on increasing wheat output.