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The food ministry is hopeful the impasse concerning the minimum support price (MSP) will be sorted out before the start of wheat procurement, which has been advanced by a month, and there will not be any impact on purchases.
Wheat procurement usually starts on April 1 in most parts of the country but in the coming season the government has given the freedom to states to advance the dates.
Most states are planning to start procurement between March 1 and 15.
“Of the big states, Uttar Pradesh has indicated it will start procurement on March 1,” Food Secretary Sanjeev Chopra told reporters on Thursday.
He said the protests would not affect operations.
The bulk of the farmers on Delhi borders are from Punjab and Haryana, which are among the largest contributors of wheat to the central pool.
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Western Uttar Pradesh, where the agitation is gaining traction, is also a big wheat-producing zone.
“The central government has given an offer to the agitating farmers (the guaranteed purchase of three oilseeds, maize, and cotton at the MSP from those willing to shift from wheat and paddy) and is willing to explain the proposal more as has been spelled out by the agriculture minister as well. We feel the issues can be resolved through proper communication,” Chopra said.
He said the wheat crop conditions were excellent with no impact of premature warming.
“If the weather continues to remain so for the next 10-15 days we can expect a bumper harvest,” Chopra said.
The government has targeted annual wheat production of 114 million tonnes in 2024 and is in the process of deciding in the next few days how much to purchase.
“UP, Bihar and Rajasthan are focused areas for raising wheat procurement this season and we are trying to open more procurement centres in those areas where arrivals and production are more,” Chopra said.
In the rabi marketing seasons from 2019-20 (April-March) to 2021-22, wheat procurement showed an increasing trend and reached a record of 43.3 million tonnes in 2021-22.
However, procurement rang up a steep decline in 2022-23 and reached a record low of 18.8 million tonnes but increased by about 40 per cent to 26.2 million tonnes in 2023-24.
Food prices
On food prices, the secretary said wheat flour (atta) prices had stabilised after the launch of Centre’s “Bharat” while in the case of rice, the expectation was the same with the launch of the same brand earlier this month.
“We are trying to sell around 1.5 million tonnes of ‘Bharat’ atta and rice over the next four to five months. Of that till now around 350,000 tonnes of atta and 30,000-40,000 tonnes of rice have been sold,” Chopra said.
He said in the next few months there was no possibility of any spike in the prices of any food items because the harvest was about to enter the markets.
Chopra said the 20 per cent export duty on parboiled rice had been extended till further orders because traders were hoarding it, expecting a relaxation in the export tax.
The duty on export of parboiled rice was to expire in March 2024.
Sugarcane FRP
Chopra said the fair and remunerative price (FRP) for sugarcane, which was raised by a sizable 8 per cent for the 2024-25 (October-September) season, was part of a series of measures being taken by the government to support sugarcane farmers. The FRP hike was the second-highest since 2014-15
He said the government had for the first time facilitated a price of Rs 4,263 per tonne for potash derived from molasses (PDM), which had been agreed upon by sugar mills and fertiliser companies. This would be an additional revenue stream for mills and would help them make timely payments to farmers.
PDM is a potassium-rich fertiliser derived from ash in molasses-based distilleries and is a byproduct of the sugar-based ethanol industry.
Meanwhile, on the FRP, farmer groups said the increase was inadequate.
The Cabinet on Wednesday raised the FRP to Rs 340 per quintal and it would be paid at the base recovery of 10.25 per cent.
The Indian Sugar Mills Association (ISMA), in its reaction to the FRP increase, said the government should collect 4-5 million tonnes of sugar every year from the industry, based on the minimum support price recommended by the Commission for Agricultural Costs and Prices.
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