Wheat procurement will be lower this year

The MSP is fixed for the Fair Average Quality of grain that is purchased by the FCI and its agencies.

April 15, 2015 02:45 am | Updated 03:32 am IST - NEW DELHI:

The target was to procure 28 million tonnes of wheat, but it is likely to slip to 25 million tonnes, well-placed sources told The Hindu.

The target was to procure 28 million tonnes of wheat, but it is likely to slip to 25 million tonnes, well-placed sources told The Hindu.

There is a growing concern in official circles about untimely rain and hail in the northern parts of the country hitting wheat procurement for the Public Distribution System by an estimated three million tonnes this year. This may not augur well for a country that is committed to providing cheap foodgrains to 67 per cent of its population under the National Food Security Act.

The target was to procure 28 million tonnes of wheat, but it is likely to slip to 25 million tonnes, well-placed sources told The Hindu . This will be five million tonnes lower than what the Food Corporation of India and its agencies had procured last year.

This is on the back of the downward revision of wheat production this rabi season — from 96 million tonnes to an estimated 92 million tonnes — due to damage to standing crop.

The Agriculture Ministry estimates the loss in wheat production to the tune of about 4 million tonnes on account of late rain and hail that has played havoc with standing wheat crop in parts of Haryana, Rajasthan, Uttar Pradesh, Madhya Pradesh and Gujarat.

At places, the standing mustard and horticulture crop has suffered huge damage.

As State after State is sending memorandum to the Centre for help, the government on Tuesday relaxed the quality norms for purchase of wheat in Haryana as it had done earlier for Gujarat, Rajasthan and Madhya Pradesh.

The relaxation for shrivelled and broken wheat grains has been raised by three per cent to nine per cent for Haryana. However, the farmers whose below-par wheat is purchased for the central pool will face a cut of Rs.14.50 paise per quintal in the minimum support price for their produce.

The MSP is fixed for the Fair Average Quality of grain that is purchased by the FCI and its agencies. For the 2015-16 marketing season it is set at Rs.1,450 per quintal.

The Central government has decided that the grain that has suffered lustre loss of more than 10 per cent and up to 50 per cent of the affected kernels will also be purchased with a value cut of Rs.3.63 paise per quintal.

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