How the Government’s Wheat Procurement Strategy is Affecting the Agricultural Industry
How the Government’s Wheat Procurement Strategy is Affecting the Agricultural Industry
Recent data shows that the government’s actions to guarantee food security and steady agricultural markets have been successful, with rice procurement reaching an impressive 55.8 million tonnes. In comparison, wheat procurement stands at 26.2 million tonnes.
These numbers testify to the government’s commitment to supporting farmers, maintaining stable food prices, and meeting the country’s growing demand for essential grains. Let’s delve into the details of this significant achievement and its implications for the agricultural sector and the overall economy.
The amount of wheat purchased in the rabi marketing year (April–March) 2023–24 has surpassed last year’s total procurement of 18.8 million tonnes, reaching 26.2 million tonnes.
According to the food ministry, the government has purchased 55.8 million tonnes of rice in the 2022–2023 marketing season, providing 1.22 crore farmers with an MSP of Rs 1.7 lakh crore in return. The amount of wheat purchased in the rabi marketing year (April–March) 2023–24 has surpassed last year’s total procurement of 18.8 million tonnes, reaching 26.2 million tonnes.
Rice is commonly consumed in numerous countries, including parts of the world’s second-most populated country. The Indian government, conscious of the importance of rice in its citizens’ diets, has been actively procuring rice from farmers to ensure food security and prevent price fluctuations. Procuring 55.8 million tonnes of rice is remarkable and showcases the successful implementation of various government schemes and initiatives.
The procurement process involves government agencies such as the Food Corporation of India (FCI) and state-level agencies purchasing rice directly from farmers at minimum support prices (MSP). This system guarantees the farmers’ produce a fair price and protects them from market uncertainties. The procured rice is then utilized for various purposes, including distribution through the public distribution system (PDS), maintaining buffer stocks, and meeting emergency requirements.
Wheat, another essential grain in India, has also witnessed a significant procurement figure of 26.2 million tonnes. The government’s procurement operations for wheat are similar to those for rice, with the FCI and state agencies playing a crucial role in purchasing wheat from farmers. This substantial procurement volume is a testament to the government’s commitment to supporting wheat farmers and stabilizing wheat prices nationwide.
Under the price support programme, the Food Corporation of India (FCI) works with state-run organizations to purchase wheat and paddy. Rice is made by buying paddy and grinding it. In all, 83 million tonnes of paddy (55.8 million tonnes in terms of rice) were purchased up until June 19 of the current Kharif selling season (October-September), according to the ministry.
Benefits of Government Procurement:
- Ensuring Food Security: Procuring large quantities of rice and wheat guarantees food security for the nation. By building substantial buffer stocks, the government can effectively manage any fluctuations in supply or adverse weather conditions, ensuring a steady and reliable food supply for the population.
- Price Stabilization: The government’s procurement operations help stabilize prices in the agricultural markets. By providing farmers with a fair and fixed MSP, the government ensures that farmers receive adequate compensation for their produce. This stability extends to consumers, preventing sudden price surges and making essential food grains affordable and accessible.
- Empowering Farmers: The procurement process provides farmers with a secure and guaranteed market for their crops. This incentivizes agricultural production, boosts farmers’ income, and enhances their overall socio-economic well-being.
- Buffer Stocks and Emergency Management: The significant procurement figures enable the government to maintain substantial rice and wheat buffer stocks. These stocks act as a safety net during natural disasters, crises, or emergencies, promptly ensuring a continuous food supply to affected areas.
The procurement operation has benefitted as many as 1.22 crore farmers. The minimum support price (MSP) given to them is around Rs. 1,71,000 crore. The Centre will purchase 62.60 million tonnes of rice to meet its goal during the 2022–2023 selling season. The FCI purchased 57.58 million tonnes of rice for the 2021–22 marketing season.
According to the agricultural ministry’s third estimate, rice production is predicted to reach a record 135.54 million tonnes for 2022–2023, up from 129.47 million tonnes the year before. According to the statement, the ongoing wheat procurement activities have already helped nearly 21.29 lakh farmers, with an MSP outflow of about Rs 55,680 crore.
Punjab, Madhya Pradesh, and Haryana contributed significantly to the purchase, totalling 12.12 million tonnes, 7.09 million tonnes, and 6.31 million tonnes, respectively. According to the ministry, the government has ensured that all conditions are met for simple procurement procedures.
The government’s successful procurement of 55.8 million tonnes of rice and 26.2 million tonnes of wheat is a commendable achievement that highlights its commitment to the welfare of farmers, food security, and market stability.
This robust procurement system provides a fair deal to farmers, ensures stable food prices, and safeguards the nation against unforeseen events. With such consistent efforts, the government is pivotal in bolstering the agricultural sector and fostering economic growth.
