UP farmers throng private shops to sell wheat; give procurement centres a miss

The footfall of farmers at government-run procurement centres in Uttar Pradesh (UP) has been alarmingly low this season.

The typically noisy, bustling centres were strangely quiet across several locations in the state for the last two weeks. Only a handful of farmers came to the centres, not to purchase wheat but to collect information.

In the light of the current state of affairs in the state, the UP government's target to hit record high in wheat procurement by June 15, 2022, looks like an elusive dream. 

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From Barabanki and Etawah, to Etah, Meerut and Deoria, a very small number of farmers turned up to weigh their wheat at district procurement centres. Many centres are falling behind in achieving their target, India Today reported.

This, regardless of the Food Marketing Department arranging forks, sieves, banners as well as pure drinking water at the hubs.

Following an increase of Rs 45, the Minimum Support Price (MSP) of wheat is Rs 2,015 per quintal; out of this Rs 20 has to be given for maintenance, making the grain Rs 1,995 per quintal for the farmer.

In contrast, wheat is retailing at Rs 2,030-2,040 in the market, giving a better margin to the farmer, and leading to low turnout at the procurement centres.

The Naveen mandi in Barabanki was notably empty and hardly any procurement has happened in the last two weeks. Area Marketing Officer (AMO) Anup Kumar Verma told India Today that the government has hiked the MSP on wheat but thus far the crop has not been harvested.

The department is expecting a good show after a week. Verma added that the government is offering better price and transport transaction, which is of great benefit to farmers. 

On the contrary, wheat farmer Sunil claimed that the government MSP is less than the market price, whereas the cost involved in producing the crop is high.

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Thus, farmers are more amenable to selling their crop to agents and traders at more competitive pricing. Another wheat farmer Mohhamad Intezar stated that at this time, wheat production has been impacted and the demand for the crop is presently high.

Even though the price offered by the government is indeed better than last time, with a view to sell at the procurement centre, he has to take loans online and go through a tedious process. Thus, he sells his crop at private shops to elude the complicated procedure.

Thus far, the government has opened 6,000 wheat procurement centres. After 12 days in this season, the state has been able to buy only 4,668 metric ton of wheat and is expecting to procure 60 lakh metric ton of the crop this season.

The present procurement is 70 per cent less than last year. On the other hand, farmers are swarming the private shops, where the wheat sale is taking place in a big way.

Food Marketing Officer (Etawah) Santosh Kumar Patel said that private shops in the market are purchasing wheat at Rs 2,050 per quintal or more, while the government support price has been kept at Rs 2,015 per quintal.

Owing to this significant gap in government and market rates, farmers are choosing to sell wheat at the shop of agents.

Patel elucidated that only 10 per cent of wheat has made it to the market and 90 per cent is standing in the fields. Because of less inflow of wheat, the market price is high. As soon as the wheat harvest is in excess, market rates will fall and farmers would come to the government centres.

Agent Fateh Bahadur said that presently, the market price that farmers are getting for wheat is more than Rs 2,030 per quintal. Furthermore, another factor that goads farmers to sell to traders is the crop failing in the criterion of the procurement centres. 

Meanwhile, UP Agriculture Minister Surya Pratap Shahi ducked the question of non-procurement at wheat buying centres and farmers turning to agents who are paying them more than the MSP.

Rather, he reiterated that the government has established 5,700 purchasing centres across the state and also hiked the support price to Rs 2,015 per quintal.

(With inputs from Abhishek Mishra.)