Government Extends Wheat Purchase Period to Benefit Farmers

Key Highlights

• The wheat purchase period was extended to May 20.
• Farmers can sell at MSP despite market prices.
• Relaxation in wheat quality criteria.
• Chief Minister's directive for the extension.

In a bid to support the farmer's welfare and to ensure fair prices for agricultural produce, the government has extended the period for purchasing wheat at Minimum Support Price (MSP) in Madhya Pradesh. This move comes as a relief for farmers across the state, allowing them ample time to sell their wheat crops at MSP until May 20.

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Government's Effort to Support Farmers

The decision to extend the wheat purchase period comes from the government's commitment to supporting farmers amidst active wheat procurement at MSP nationwide. With a bountiful wheat harvest this year, procurement activities have been in full swing. Farmers have also been reaping profits by capitalizing on favorable market prices, which surpass the MSP. However, to ensure that farmers receive the benefits of MSP, the state government has taken proactive measures by extending the purchase period.

Chief Minister's Directive

The directive to extend the wheat purchase period was issued by Madhya Pradesh Chief Minister Dr. Mohan Yadav. Initially, the last date for MSP wheat purchase varied across districts, ranging from May 7 to May 15. However, recognizing the need to meet procurement targets and support farmers suitably, the Chief Minister instructed the Food and Supplies Department to extend the deadline uniformly to May 20.

Relaxed Rules for Wheat Sale

Acknowledging the importance of meeting procurement targets, the government has relaxed rules for wheat sales at MSP. Under the new guidelines, farmers can now sell wheat with poor shine up to 50 percent at MSP without deductions, ensuring they receive the full MSP. This year, the MSP for wheat stands at Rs 2275 per quintal, with an additional bonus of Rs 125 per quintal provided by the state government, totaling Rs 2400 per quintal for farmers.

Procurement Status and Targets

Despite the extension, wheat procurement in Madhya Pradesh remains below expectations. So far, only about 35 lakh metric tonnes have been purchased, compared to 56 lakh metric tonnes last year. This shortfall poses a challenge to the state government, which aims to purchase wheat worth Rs 24 thousand crore this crop year, while the Central Government targets about 100 lakh tonnes for Madhya Pradesh.

Market Dynamics and Farmer Preferences

Farmer’s desire to sell wheat in the open market over MSP is influenced by market prices. Current online commodity rates indicate an average price of Rs 2306.92 per quintal for wheat in Madhya Pradesh, with variations ranging from Rs 2200 to Rs 2500 per quintal. Given these lucrative market prices, farmers are opting for open market sales despite the MSP and bonus incentives, which poses a challenge to meeting procurement targets.

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CMV360 Says

The extension of the wheat purchase period underscores the government's commitment to supporting farmers amidst favorable market conditions. However, striking a balance between farmer interests and procurement objectives remains crucial for ensuring agricultural sustainability and farmer welfare. As the procurement season progresses, continued efforts and strategies will be essential to meet targets and safeguard the interests of farmers across the state.