The Election Commission has given green signal to the government’s decision to give Rs 50 per quintal bonus to wheat farmers over and above the support price of Rs 1,120 per quintal for this year.

“The file has come from the Election Commission approving the proposal. The wheat bonus of Rs 50 per quintal over and above the MSP of 1,120 per quintal has been approved for this year,” Food Minister, Mr K V Thomas, said on Monday.

Although the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister, Mr Manmohan Singh, had approved the decision (to give wheat bonus) on April 6, it had not been notified due to the election in four states and a Union Territory.

Over and above the minimum support price (MSP), the government offers bonuses to farmers to enhance procurement.

Thomas said there would not a problem of storage this year. The minister also added, “We are taking all the measures and have also told the state governments to ensure the MSP payments to the farmers“.

There had been reports from some states that farmers were not getting the MSP rates.

The Centre procures wheat and rice from farmers via the Food Corporation of India (FCI) to run its ration shops and other welfare programmes like Mid-day Meal Scheme.

Wheat procurement started from the middle of March and is likely to pick-up by next week and continues till June.

So far this year, wheat procurement is lower by 75 per cent at 21.02 lakh tonnes as against 85.55 lakh tonnes in the year ago period because of less arrival of grain in markets of Punjab and Haryana.

Food Corporation of India has set a target to procure 26.2 million tonnes of wheat in the current year against 22.5 million tonnes last year as country’s wheat production is estimated to be at a record high of 84.27 million tonnes in 2010—11.

In 2009-10 crop year (July-June), the country had produced 80.8 million tonnes of wheat.

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