Stocks adequate to meet supplies, says Govt; Rs 57,000 crore paid to farmers as MSP
By Sandip Das
The wheat procurement drive for 2024-25 rabi marketing season (April-June) by the government agencies cames to an end with purchase of 26.6 million tonne (MT) of grain from farmers, 1.5% higher than in the previous season.
As on Monday, the Food Corporation of India (FCI) had 29.76 MT of wheat stocks in the central pool against buffer of 27.58 MT, which, according to officials, is adequate to meet supplies for the Pradhan Mantri Garib Kalyan Anna Yojana (free ration scheme) and carrying out market intervention initiative aimed at curbing rise in prices.
The government supplies 18 MT of wheat annually for distribution under the PMGKAY. Sources said more than Rs 57,539 crore has been paid to 2.1 million farmers’ bank accounts against the wheat purchase under the minimum support price (MSP) operation mostly
Five agencies entrusted with procurement in Punjab, the biggest contributors to central pool stock, procured a record 12.46 MT of wheat in the current season from the farmers.
In Haryana, 7.15 MT of wheat has been purchased under the MSP operations for central pool stock. In Madhya Pradesh, 4.71 MT of wheat was procured this season.
To curb prices, the government has sold a record 10 MT of wheat in the open market through weekly e-auctions to bulk purchasers and flour millers in FY24.
Meanwhile the rice stocks held by the FCI currently is close to three and half times the buffer for July 1, despite a fall in procurement in the current season (October-September) compared to the same period last season. As on Monday, FCI held 48.95 MT — 32.9 MT of rice stocks and 16.05 MT of grain receivable from millers. The stock is against the buffer of 13.54 MT July 1.
Officials said the current stock will be enough to meet the requirements for the public distribution if no fresh purchase under MSP operations is carried out next season (October-September, 2024-25).
Sources told FE that the committee of ministers will soon decide on disposing the surplus rice stock held in the central pool.
The paddy procurement by the government agencies has crossed 77.53 MT (52.07 MT in terms of rice) in the current season – 2023-24 so far which is 8% lower than the same period in the last fiscal.
The government had purchased a total of 56.87 MT of rice in the 2022-23 season.
The FCI requires around 38 MT of rice annually to distribute to 800 million beneficiaries of under PMGKAY.
Officials said that FCI so far has received purchase indent for 1.5 MT of rice from the agencies such as Nafed, NCCF and Kendriya Bhandar for selling ‘Bharat’ rice. About a MT of grain has been lifted by these agencies.
In February, the government had launched retail sale of ‘Bharat’ rice in 10 kg bag at Rs 29/kg across the country which was aimed at improving supplies and ensuring availability at affordable rates.
However there has been a lukewarm response to the open market sale of rice to bulk buyers by FCI.
This article has been republished from The Financial Express.