Tuesday 12 May 2020

Wheat Procurement in Northern States

Wheat Procurement in Punjab, Haryana and Uttar Pradesh 

Wheat Procurement
Wheat Procurement 

In the current Rabi season 2020-2021, procurement on wheat on MSP has increased to 252.50 lakh tonnes. In which Uttar Pradesh is the largest producing wheat state of the country and has a share of only 4.80 percent. The central government has fixed the MSP of wheat at Rs 1,925 per quintal for the current Rabi marketing season 2020-21 where the Rs 1,840 per quintal in the previous Rabi. We think that Uttar Pradesh will contribute in large quantity but this year due to coronavirus the Govt is some step away from Wheat procurement.

According to FCI, procurement of wheat from Punjab, Haryana and Madhya Pradesh is going on in full swing, but with Uttar Pradesh, procurement from Rajasthan is being done in limited quantity. 

According to the Punjab Food department or procurement, they have covered 85 percent of the wheat procurement within 26 days of purchase from the state. The target of procurement from the state is 135 lakh tonnes while the procurement of 114.90 lakh tonnes of wheat has been completed by May 10. But when we see the previous year data they purchased 129 lakh tonnes of wheat at MSP.

If we see the Haryana procurement which is 57.6 lakh tons for the current year 2020. The target is 95 lakh tons and covers approximately 61 percent where the last year 93 lakh tons purchased by the state. According to the Food and supply department, the govt has purchase 376175 farmers wheat and paid 1500 crore.

Where the Uttar Pradesh govt is far away from the target which is 55 lakh tons but they purchase only 12 lakh tons and they said this is due to lack of jute sacks. But the state govt now allows plastic burrow in the state. Also, confirm that they had purchased more than 2 lakh farmers wheat with keep in mind of social distancing.

If we see the procurement center in the state they are more than other states they have around 6000 centers but when we see the last year procurement data which is 37 lakh tons then they have increased their target and delay due to coronavirus conditions in the country. 

The production of wheat including both the states of Punjab and Haryana is estimated to be 300 lakh tonnes, while procurement from these states has been more than 172 lakh tonnes, i.e. 57% of the total production. Uttar Pradesh is estimated to produce 363 lakh tonnes of wheat while procurement has been done, only 12.1 lakh tonnes i.e. only 4.04 percent of the total production.

The central government has set a target of procuring 407 lakh tonnes of wheat 2020-21 as against 341.32 lakh tonnes of wheat procured in the last year.

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