Even as questions over last year’s controversial groundnut procurement continue to haunt procurement agencies and the State administration, the Gujarat Government has announced fresh buying of the oilseed at the minimum support price (MSP) from November 15.

The nodal procurement agency, National Agricultural Cooperative Marketing Federation of India Ltd (Nafed), however, believes that responsibility needs to be fixed for warehouse management before the procurement begins, to avoid a repeat of last year.

Speaking to Businessline , Nafed Chairman VR Boda said: “Nafed has not taken any decision on the process of procurement. We want to do it through cooperative societies. But the government seems to be interested to take it up through its own Civil Supplies Corporation. We want to work with the cooperatives. In case of the Corporation getting involved, it becomes difficult to manage the procurement process for us."

The State government has said that State Civil Supplies Corporation will begin procurement through 122 centers across the State.

Farmers also have raised apprehensions on participating in the procurement this time as last year's experience of procurement and payment delays has left behind a bitter taste.

Farmers hesitant

Restrictions on the quantity for procurement and the time-frame for the payments are making farmers hesitant to participate this time. Last year, the State government had set a ceiling of 2,009 kg per hectare, per farmer for procurement. This year, a farmer can sell 1,750 kg of groundnut in a day at the procurement centre.

“The restrictive limits and payment woes are keeping farmers jittery about participating in procurement. Groundnut prices are quite attractive at present and farmers would prefer to sell in the open market even if the prices rule at ₹100 less than MSP,” said Boda.

Trader sources believe that the groundnut crop is likely to be 50 per cent lower than that of last year at about 15.95 lakh tonnes.

The State government, however, has estimated the crop size at 26.95 lakh tonnes with a yield of 1,836 kg per hectare. Groundnut sowing was recorded on about 14.68 lakh hectares, a tad lower than last year.

Last year the procurement agencies had procured in excess of 8 lakh tonnes of groundnut at MSP after market prices declined sharply due to increased supply.

Boda, however confirmed that there will be no storage concerns as almost half of the stored groundnut from last year has been disposed of, and about one lakh tonnes more will be sold from the warehouses. ‘There are enough warehouses available, hence storage will not be a problem. But we are yet to hear from the government on this,” he added.