Centre Aims 7-fold Jump in Wheat Procurement

• 05 Apr 2024

Why in News?

Recently, the Centre has announced plans to significantly increase wheat purchase from non-traditional states of Uttar Pradesh, Rajasthan, and Bihar and set a target of seven-fold jump in procurement to 50 lakh tonnes in 2024-25.

Key Points

• Uttar Pradesh, Rajasthan, and Bihar contributed only 6.7 lakh tonnes to the central reserve during 2023-24.
  • The Union Food Ministry has decided to procure 16% of the total wheat procurement target of 310 lakh tonnes set for 2024-25.
• Wheat procurement at Minimum Support Price (MSP) is normally undertaken by the Centre's nodal agency Food Corporation of India (FCI) and state agencies.
• National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED) and National Co-operative Consumers' Federation of India Ltd. (NCCF) have also been included in the procurement target of 5 lakh each in 2024.
  • Wheat MSP has been fixed at Rs 2,275 per quintal for 2024.
• According to the sources, wheat procurement from non-traditional states will help restore allocation of wheat under the Pradhan Mantri Garib Kalyan Anna Yojana and other welfare schemes.
• Steps taken to strengthen wheat procurement in non-traditional states:
  • The procurement window has been extended to April instead of March, and set up a dedicated farmer helpline to address procurement-related queries.
  • The government has decided to ensure transfer of MSP to bank accounts of farmers within 48 hours, streamlined procurement incidental burden for farmers, smoothened banking-related issues such as Aadhaar integration with bank accounts.
  • The government has also opened more procurement centres targeting production hotspots, set up mobile procurement centres, and decided to leverage Self Help Groups, Panchayats, Farmer Producer Organisations.
  • A central control room has been set up in the FCI headquarters in Delhi for real-time monitoring.
• According to the food ministry, six lakh tonnes of wheat have already been procured so far this year from Uttar Pradesh, Madhya Pradesh, Rajasthan, and Bihar.
• The government has banned wheat exports since May 2022 to boost domestic availability and check prices.
  • The wheat production is estimated to be a record 112 million tonnes during 2023-24, compared to 2022's 110 million tonnes, as per the agriculture ministry.

National Agricultural Cooperative Marketing Federation of India Ltd (NAFED)

• It is an apex organization of marketing cooperatives for agricultural produce in India.
• It was founded on 2nd October 1958 and is registered under the Multi-State Co-operative Societies Act, 2002.
• NAFED is now one of the largest procurement as well as marketing agencies for agricultural products in India.