The Ministry of Agriculture will consult State Governments early next month to set up a mechanism for protecting farmers’ income when market prices fall below the minimum support price (MSP). At the same time, in a move that could help the farmers, the Centre has fixed wheat procurement target at 32 million tonne (MT) for the year 2018-19. Last year Food Corporation of India (FCI) had procured 30.82 MT from the farmers during 2017-18.

Union Agriculture Secretary SK Pattanayak said that the Ministry of Agriculture will call a meeting of State Governments early next month to discuss a mechanism so that farmers get enhanced MSP. He was speaking on the sidelines of a conference on food security organised by the Vivekanand International Foundation. In his Budget 2018 speech, Finance Minister Arun Jaitley had announced that Niti Aayog in consultation with Central and State Governments will put in place a foolproof mechanism to ensure farmers get benefit of MSP.

Stating that the Centre is open to all suggestions from stakeholders, Pattanayak said the Ministry is studying the model adopted by Madhya Pradesh and Telangana Governments. While Madhya Pradesh is paying farmers difference between the MSP and the market price, Telangana Government will offer fixed amount to farmers on per acre of land.

Earlier, Union Food and Consumers Affairs Secretary Ravi Kant held a meeting with State Governments to finalise the wheat procurement target for the year 2018-19. The move will also help the farmers get MSP for their crops and stop them from distress selling of their crops to middle men. With this decision, the Centre and the State Government agencies will procure more wheat and rice from farmers at the prevailing market rates.

The Centre has also fixed paddy/rice procurement estimated at 55 lakh tonnes for Rabi crops in Kharif season 2017-18. The FCI, as the Central procurement agency, procures rice and wheat largely from Punjab and Haryana, stores these in warehouses and distributes to States for targeted public distribution system (TPDS) operations.

According to officials of the Ministry of Food and Consumers Affairs, the decision was taken at a meeting of State food secretaries here to discuss procurement arrangements. “The target has been decided to keep an estimate of 32 MT of wheat procurement during 2018-19 after consulting with the States,” said officials.

Wheat procurement target, however, is higher than the actual purchase of 30.82 MT during 2017-18 marketing year. Out of the total wheat procurement target for 2018-19 marketing year, Punjab aims to procure maximum at 11.9 MT, followed by Haryana 7.4 MT, Madhya Pradesh 6.7 MT, Uttar Pradesh 4 MT, Rajasthan 1.6 MT, Bihar 2 MT and Uttarakhand 1 MT.

Although wheat marketing year runs from April-March, the bulk of procurement is done in first three months. FCI and State agencies undertake purchase at the minimum support price. The Agriculture

Ministry has kept a target of 97.50 MT wheat output in 2017-18 crop year and is hoping better production at an all time high of over 100 MT. Farmers had sown wheat in 31.78 million hectare in the 2016-17 crop year (July-June).

In case of rice, the Government has set a target to buy 5.5 MT grown in Rabi season of 2017-18 crop year, which is over and above the estimate of 37.5 MT set for buying Kharif rice this year.

Already, Kharif rice procurement has reached 28.97 MT as on February 9 this year. Wheat production target has been kept at 97.50 MT for 2017-18 crop year and the government is hoping better production at an all time high of over 100 MT even as acreage under the crop is down 4 per cent.