M.P. government deposits procurement money in farmers' bank accounts

For the first time in India, the Madhya Pradesh government has directly deposited over Rs. 1,000 crore in the bank accounts of farmers against procurement of wheat in the last 25 days.

This amount includes a bonus paid at the rate of Rs.100 per quintal. The direct deposit process aims at saving farmers from the clutches of middlemen and will be continued in the coming years too.

According to the State government, over 8.5 lakh tonnes of wheat procured during the Rabi season of this 5.69 lakh tonnes had already been safely stored in godowns.

Once harvesting is completed in certain areas of the State, where it had been delayed due to late rains, arrival of wheat in the market will further increase.

According to government sources, the procurement process is being consistently monitored and all Ministers have taken up of this responsibility on the field.

In order to ensure proper and hassle-free payment to farmers, the government has put in place a transparent mechanism this year. The new mechanism would require farmers to fill up a proforma on the basis of their loan books at the procurement centre.

The loan books would show the name of the banks from which farmers have borrowed as well as their account numbers. The co-operative societies would record this information along with the quantity procured and the price to be paid.

The societies would then send the statement along with other relevant details of the farmers to the banks concerned. On the basis of this, the due amount would be deposited directly to the farmers' bank accounts.

The bonus amount on the procurement of wheat was increased to Rs.100 per quintal from Rs.50 this year by the government. Last year, over 35 lakh tonnes of wheat was procured on support price and Rs.4,200 crore was paid to farmers.