Uttar Pradesh, India’s leading wheat producer, is targeting to procure 3.9 million tonnes (MT) of wheat in the 2011-12 season beginning April 2011.
This comes in the backdrop of bumper wheat production estimates for the coming season. According to the state agriculture department, the state wheat production is likely to increase by 4.5 per cent to 28.83 MT compared to 27.5 MT last year. The wheat acreage is estimated at 9.61 million hectares.
The procurement season would start from June 30 and the government has directed food department officials to meet the target and ensure payment of minimum support price (MSP) of Rs 1,120 per quintal to farmers. A major portion of wheat produced is retained by farmers for personal consumption and only a portion of rabi crop gets to the market.
Food Corporation of India (FCI) will procure another 100,000 tonnes of wheat. Last year, the wheat procurement by government agencies was rather poor and only 50 per cent of the 4 MT target was met. MSP then stood at Rs 1,100, but the state farmers had received payments at Rs 1,056 per quintal due to shrivelled crop following excess heat. However, the market rate last year revolved around Rs 1,200 per quintal.
Meanwhile, Food Minister Ram Prasad Chaudhary directed the setting up of procurement centres for ensuring minimum commutation by farmers for selling wheat, and operationalise a ‘single window’ system towards that end for facilitating receipt, issue of coupon and acknowledgement are processed by one official at one place.
