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Harish Damodaran
M.R. Subramani

Ministers meeting to take stock of crop situation

New Delhi/Chennai March 12 The empowered group of ministers (EGoM) will meet on Tuesday in the Capital to assess the current wheat crop situation following rains in the growing areas since Saturday. It is also likely to take a decision on announcing a bonus for procurement of wheat by the Government agencies for buffer stocks.

State Govts' demand

"The Government will take a decision on demand for hiking the procurement prices for wheat (at the meeting). Punjab and Haryana have demanded a price of Rs 850 a quintal for procuring wheat and the Punjab Chief Minister, Mr Parkash Singh Badal, has also met the Prime Minister, Dr Manmohan Singh, to seek higher price for wheat," official sources said.

The EGoM is likely to clear the payment of Rs 50 a quintal as bonus to farmers for selling wheat to the procurement agencies. This will be in addition to the MSP of Rs 750 a quintal declared by the Government in November.

Besides pressure from Haryana and Punjab Governments for a higher payment, the Centre could agree on the bonus in view of elections to the Uttar Pradesh Assembly. The first leg of the polls will be held on April 7.

Late decision

Last year, the Centre had paid a bonus of Rs 50 over the MSP of Rs 650 a quintal. However, the decision came on April 21 and by that time, the farmers sold off their produce to private trade.

Against a target to procure 160 lakh tonnes for buffer stocks, the Centre was able to buy only 93 lakh tonnes.

Last year, the country faced problems with regard to wheat in view of low carryover stocks and a fall in production to 69.48 million tonnes due to weather problems.

This year, it has set a lower target of 130 lakh tonnes, mainly on hopes that buffer stocks as on April would be around 45 lakh tonnes.

Procurement problems

The trade, on the other hand, sees problem in the Centre procuring for buffer stocks.

"Currently, prices are ruling around Rs 980-990 a tonne for delivery in north India mills. At the most, the prices could decline by Rs 20 and therefore, farmers may not be forthcoming to sell wheat to the procuring agencies at the MSP of Rs 750," trade sources said. (The mill delivery price translates into a rate of Rs 830-840 a quintal in mandis.)

Already some of the farmers who had come forward to sell at MSP had been confronted by a section of growers owing allegiance to the Bharat Kisan Union (BKU), led by Mr Mahendra Singh Tikait.

"There is pressure on farmers to not sell to the procurement agencies at the current MSP. Also, the BKU has a strong foothold in these areas," said the sources.

Last year, a major part of the 93-lakh-tonnes procured by the Centre were from Punjab and Haryana.

"The problem is that farmers saw a good price last year and they would like to see a similar one this year," said the sources.

A Uttar Pradesh-based miller said with prices of almost all essential commodities rising, it would be "only fair to pay farmers at least Rs 800 a quintal".

Returns

On the other hand, official sources said private trade would not be stopped from buying in the open market. "However, they will have to file a return if the total procurement by them exceeds 50,000 tonnes," they said.

More Stories on : Wheat | Bonus Announcements

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Wheat growers likely to get Rs 50/quintal bonus

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