Wheat Procurement Begins at MSP, Farmers Get Lower Prices Compared to Market

Key Highlights

• Wheat procurement at MSP started on April 1.
• MSP set at Rs 2275/quintal, up by Rs 150 from last year.
• Fewer farmers sell to government centers due to higher market prices.
• Market rates surpass MSP, hindering procurement targets.
• Farmers prefer trading with private buyers for better profits.
• Haryana implements efficient procurement initiatives.

In many parts of the country, the procurement of wheat at the minimum support price (MSP) started on April 1. This year, the MSP for wheat stands at Rs 2275 per quintal, marking a Rs 150 increase from the previous year. Despite bonus announcements in states like Rajasthan and Madhya Pradesh, there's a notable trend: fewer farmers are opting to sell their wheat at government procurement centers, instead choosing to sell to traders. The primary reason behind this shift is the higher market price of wheat compared to the MSP.

Also Read: Good News for Farmers: Mustard Procurement at MSP to Start From This Date

Market Prices Surpass MSP

In most mandis across the country, wheat prices are rising above the MSP. Market rates have also surged from Rs 2300 to over Rs 2350 this season. Consequently, the farmers are turning away from the government centers in favor of selling to traders. In Uttar Pradesh and other states, the scenario is similar, with minimal activity observed at government procurement centers. This indicates that achieving the government's set target for wheat procurement at MSP might be challenging this year.

Rising Wheat Market Prices

Online market data reveals an upward trend in wheat prices. In Uttar Pradesh, the average wheat price in mandis stands at Rs 2415 per quintal, with the highest recorded price reaching Rs 2650 per quintal. These figures significantly surpass the government's MSP of Rs 2275 per quintal, suggesting a potential for further price hikes in the near future.

Also Read: Wheat Procurement at MSP Begins in UP, Ensuring Fair Rates for Farmers

Challenges in Achieving Procurement Targets

According to district marketing officers, despite the establishment of procurement centers, wheat purchases haven't commenced. The prevailing market prices pose a challenge in achieving procurement targets set by the government.

Farmer’s Response to Market Price Surge

Farmers are pleased with the surge in market prices. They express satisfaction with the favorable prices their produce commands in the market. Unlike the inconvenient process involved in selling to government centers, trading with private buyers proves more convenient and profitable for farmers. Should the market prices remain stable, farmers anticipate significant profits this season.

Also Read: Good News: Government to Purchase 6 Lakh Tonnes of Pulses on MSP, Registration Open

Wheat Procurement Initiatives in Haryana

In Haryana, wheat procurement began on April 1 across 417 centers. Anticipating higher yields this year, authorities have made elaborate arrangements at procurement centers. Payments for wheat purchases will be directly credited to farmer’s bank accounts within 48 to 72 hours through electronic means. Four procurement agencies - the Department of Fertilizer, Civil Supplies and Consumer Affairs, HAFED, HSWC, and FCI (central agency) - will oversee procurement operations in the state.

Also Read: Bonus Announced on Purchase of Wheat: A Benefit for Farmers

Here's a table summarizing the wheat prices in major markets of Uttar Pradesh:

These prices depict the variability in wheat rates across different regions within Uttar Pradesh.

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CMV360 Says

Wheat procurement at MSP began on April 1 across many regions, with the current MSP set at Rs 2275 per quintal, up by Rs 150 from last year. However, fewer farmers are opting for government centers due to higher market prices, posing challenges in achieving procurement targets. Farmers welcome the market surge, finding trading with private buyers more profitable. In Haryana, elaborate arrangements are in place for procurement, with payments directly credited to farmers' accounts within 48 to 72 hours.