Wheat procurement for buffer stocks has hit a hurdle
in Madhya Pradesh with farmers preferring to sell their
produce to private companies than central agencies because
the prices offered by private traders are higher than
the minimum support price (MSP) offered by the procurement
agencies, say wheat farmers in the state.
prices are ruling at Rs940-50 a quintal in mandis
in Madhya Pradesh, the agencies procuring wheat for buffer
stocks are offering Rs750 as MSP plus Rs100 a quintal
bonus that was cleared by the centre last week. The centre
plans to procure 150-lakh tonnes for buffer stocks.
other reason is the centre''s directive to the Railways
not to provide wagons for transporting private trade wheat
sources said wheat could be currently procured from Madhya
Pradesh and Gujarat only. However, Gujarat has come up
with the stock limit order where agencies can''t purchase
more than 5,000 tonnes at a time. And to move wheat out
of the state the state government has to be informed leading
to a delay of two days. This is also a reason why private
traders are swarming the mandis in Madhya Pradesh.
prices have begun to move up after the Centre announced
the Rs100 bonus over and above MSP last weekend. In New
Delhi market, wheat (dara) was quoted at Rs1,045-1,055
a quintal on Wednesday against Rs1,030 on March 16, when
the bonus payment was announced.