Govt continues to be most sought wheat buyer in MP | bhopal | Hindustan Times
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Govt continues to be most sought wheat buyer in MP

The government continues to be the most sought buyer for wheat farmers in Madhya Pradesh, even when the effective procurement prices for wheat is Rs 100 per quintal lesser than last year. Reason: Market price of wheat continues to be lower than that offered by the government.

bhopal Updated: May 26, 2015 21:37 IST
Rahul Noronha

The government continues to be the most sought buyer for wheat farmers in Madhya Pradesh, even when the effective procurement prices for wheat is Rs 100 per quintal lesser than last year. Reason: Market price of wheat continues to be lower than that offered by the government.

With the procurement season drawing to a close (on May 26), wheat procurement by state government is likely to exceed last year’s procurement figures of 72.03 lakh metric tonnes.

On Monday evening, procurement by state government agencies stood at 71.89 lakh tonnes, but is expected to cross previous year’s figure by Tuesday

“The procurement figures will exceed last year’s figures by about 1 lakh tonnes. We expect a surge in figures on the last day, on Tuesday,” said principal secretary, food and civil supplies, Ashok Barnwal.

In 2014, farmers were paid Rs 1,550 per quintal for wheat by government, including Rs 150 per quintal bonus paid by the state government.

In 2015, the rate was slashed by Rs100 to stand at Rs 1,450 per quintal, due to withdrawal of a state government sponsored bonus.

The minimum support price (MSP), however, was increased by Rs50 per quintal.

“Medium quality wheat is being purchased at Rs 1,350-1,400 per quintal in the market, thus making the government a more attractive buyer for farmers,” says Rajiv Agarwal, a grain trader at the Bhopal mandi.

Meanwhile, the state government has extended last date for procurement in Umaria district till May 30.