After wheat export ban, Centre extends procurement deadline

Tribune News Service

Vibha Sharma

New Delhi, May 15

After imposing a ban on exports, the Centre today asked wheat producing states with procurement closing dates expiring early to continue purchases till May 31.

Editorial: Ban on wheat export

The Ministry of Food and Public Distribution and Consumer Affairs also asked the FCI to continue procuring wheat under the central pool. The extended period would benefit farmers, it said.

The need to control domestic prices of wheat and flour, besides meeting international commitments, may have necessitated tweak in the government policy, sources say. Not very hopeful of the move having “much effect”, experts say the government is trying to show that “it is taking all steps to control the prices”, but the “harm has already been done”.

Revised dates

May 31: Punjab, Haryana, Delhi, J&K
June 10: Rajasthan
June 15: UP, MP, Gujarat, HP
June 30: Uttarakhand
July 15: Bihar

Wheat procurement under the central pool has been less during the rabi season 2022-23 compared to 2021-22 as traders offered prices higher than the MSP to farmers.

Sources said due to increasing prices in the domestic and international markets, several farmers and traders did not bring their grain to the markets. Due to the sluggish pace of wheat arrivals in recent days, a request was made by some states to allow premature closure of mandis, they added. Punjab had put in a request for closure of mandis from May 17. The Centre is also contemplating a “bonus” over and above the MSP to encourage farmers, they said. So far, 16.83 lakh farmers have received MSP value of Rs 36,208 crore. Till May 14, the government’s wheat procurement was 18 metric tonne (MT) in the ongoing year, much less than 36.7 MT a year ago.

The Centre’s decision to ban wheat exports has been criticised by many, including farmers and private traders.

Agriculture expert Sudhir Panwar said from export promotion to ban in 24 hours and now extension of wheat purchase period shows failure of crop intelligence and food management system.

“Since the beginning of the harvest season, the government machinery has facilitated wheat purchase by the private sector. When wheat prices registered an increase of 8-13 per cent in a month, despite repeated assurances by the government, another knee-jerk reaction has been initiated,” he said.

The wheat procurement target was revised to 19.5 metric tonne from the earlier target of 44.4 metric tonne for this year.

The procurement in the ongoing marketing year began in April.

The Centre said the decision has been taken following requests by state governments and Union Territories to continue procurement amid rising prices of the grain and flour etc.

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