Procurement of Wheat at Minimum Support Price: Government to Buy Tainted Wheat from Farmers, Orders Issued

Key Highlights

• The government authorizes the purchase of tainted wheat at MSP.
• Relaxation in procurement specifications benefits farmers.
• Addresses market dynamics and farmer demands.
• Ensures economic stability and support.

Amidst wheat procurement season, the Indian government has authorized the purchase of tainted wheat from farmers at Minimum Support Price (MSP). This decision, prompted by market dynamics and farmer demands, relaxes procurement specifications, aiming to bolster farmer income and streamline wheat procurement processes.

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Wheat Procurement at MSP:

Wheat is currently being procured at a Minimum Support Price (MSP), with farmers also selling wheat to traders in the market, earning good profits. Despite market prices being higher than MSP, some farmers are now bringing their wheat produce to MSP. In a bid to further facilitate farmers, the government has authorized the purchase of tainted wheat, providing them with an additional avenue to sell their produce at MSP.

Reason for Authorizing Tainted Wheat Purchase:

Previously, cooperative societies and committees refused to buy tainted wheat, causing discontent among farmers. Responding to farmer demands, the Union Ministry of Consumer Affairs, Food, and Public Distribution has relaxed wheat specifications for central pool procurement, allowing for the purchase of wheat with shine loss.

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Purchase Rates for Shineless Wheat:

According to the new directive, wheat with shine loss of up to 30 percent will be purchased at MSP in Madhya Pradesh, due to unfavorable weather conditions affecting the quality of the grains. The responsibility for quality maintenance and any subsequent financial impact rests with the Madhya Pradesh State Government.

Earlier Procurement Instructions:

In the Rabi season 2024-25, stringent procurement guidelines were in place, leading to the rejection of wheat stocks not meeting quality norms. Recognizing the challenges faced by farmers, the government has adjusted its instructions to provide relief.

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

Current Wheat Procurement Status:

Wheat procurement is ongoing in only five out of ten wheat-producing states, with Madhya Pradesh leading in procurement. Punjab and Haryana are yet to commence procurement. Challenges such as higher market rates and moisture content in wheat are affecting procurement.

Minimum Support Price for Wheat:

The MSP for wheat this year stands at Rs 2275 per quintal which was Rs 2125 per quintal last year, a Rs 150 increase compared to last year, ensuring improved profits for farmers. This decision by the Central Government aims to support farmers during the procurement season and alleviate challenges faced in selling their produce at MSP.

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CMV360 Says

The government's decision to allow the purchase of tainted wheat at MSP reflects a responsive approach to the needs of farmers and prevailing market conditions. By easing procurement specifications, farmers are empowered with additional approaches for selling their produce, ensuring greater economic stability and support.