Yogi government to miss its wheat procurement target

A worker spreads wheat crop for drying at a wholesale grain market in the northern Indian city of Chandigarh April 22, 2015. REUTERS/Ajay Verma

The UP government is all set to to miss its wheat procurement target in the ongoing rabi marketing season.In terms of statistics, state government has procured only three million tonnes (mt) of wheat up till now since April 1, which is around  40 per cent of the target of eight mt, with only 10 or so days left before the procurement season finishes on June 15.

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However, when you compare the current procurement with last year, it is four times the cumulative procurement.
The farmers of UP have been paid nearly Rs 4,500 crore for procurement this season by the agencies of the government.
Keeping aside government agencies, there is two private agencies as well in order to procure wheat to accelerate procurement. These agencies would collectively procure around 100,000 tonnes of wheat.
If the government manage to achieve the target, farmers of UP are going to get Rs 13,000 crore as total payments in the current marketing season.
It is worthwhile mentioning that higher MSP assists farmers get remunerative prices in open market.
In 2017, state has clocked wheat production of nearly 34 mt, clearly pinpointing that the government’s procurement target would be less than 25 per cent of the complete wheat output this time around.
On their part, government has set up around 5,000 procurement centres across the state. However, blame it to the not so good warehousing facilities, storing such huge quantity of the rabi crop is tough.
UP Food and Civil Supplies department was very enthusiastic regarding the procurement process earlier on in the piece but with each passing day, it is getting clear that the target is not going to be achieved.