Indian government eases wheat procurement norms in response to crop damage

MUMBAI, April 11 (Commoditiescontrol): The Indian government has relaxed quality norms for wheat procurement in Punjab, Chandigarh, Haryana, and Rajasthan to support farmers affected by untimely rains, hailstorms, and high-velocity winds. These weather conditions have caused damage to the standing wheat crop, which was ready for harvest, in some parts of these states.
The state-owned Food Corporation of India (FCI) and state agencies undertake the procurement of wheat, with the current limit for shrivelled and broken grains at 6%. However, due to the recent weather conditions, the government has temporarily raised this limit to 18% to prevent distressed sales by farmers and protect their interests.
Subodh Kumar Singh, Additional Secretary in the Union Food Ministry, said that after conducting field surveys, the government decided to relax quality norms for wheat procurement in these four states to reduce farmers' hardship. He also mentioned that the value cut would not apply to wheat with up to 6% shrivelled and broken grains.
The government has relaxed the limit for lustre loss up to 10%, with a value cut of Rs 5.31 per quintal on a flat basis to be deducted on wheat having lustre loss grains above 10% up to 80%. Additionally, both damaged and slightly damaged grain should not exceed 6%.
Singh also clarified that any deterioration in the quality of wheat stock procured under relaxed norms during storage would be the sole responsibility of the state governments. This wheat will be liquidated on an overriding priority basis. Any financial or operational implications due to the relaxation will also be the responsibility of the state governments.
The Centre has asked state governments to deduct the imposed value cut from the minimum support price of Rs 2,125 per quintal while paying farmers. The official mentioned that the Uttar Pradesh government's similar demand is under consideration, and a decision will be taken soon after analyzing the field report.
The government has purchased 13.20 lakh tonnes of wheat till April 10 of the ongoing 2023-24 marketing year (April-March), mostly from Madhya Pradesh. However, according to Food Ministry data, only about 1,000 tonnes of wheat have been procured in Punjab and 88,000 tonnes in Haryana in the same period.
The official explained that the procurement in Punjab and Haryana was delayed due to the untimely rains, and the arrivals were not substantial. However, he expects that procurement will pick up in the coming days. The Centre aims to procure 34.2 million tonnes of wheat in the ongoing 2023-24 marketing year, higher than the 19 million tonnes achieved in the previous year. This year, the production is estimated at a record 112.2 million tonnes.

(By Commoditiescontrol Bureau; +91-9820130172)