As wheat prices soar in the international market on the back of the Russia-Ukraine war, wheat exporters from Haryana have demanded a reduction in the market-fee of the grain in order to encourage its export from the state. Former president of All-India Rice Exporters Association Vijay Setia, said “I have received multiple inquiries for export of wheat. But my vendors suggested that they can provide wheat from Madhya Pradesh at prices that were cheaper than Haryana. The market fee and khachi aadhat (commission for agents) at the mandis is highest in Haryana in comparison to other states. So, wheat is being exported by private players from Madhya Pradesh and Uttar Pradesh in bulk, but only in nominal amounts from Haryana because of the higher charges in the mandis here.” Echoing similar sentiments, Haryana Rice Exporters Association president, Sushil Jain, said that a total of 6.5 per cent charges — 2.5 per cent for kachi aadhat and 2 per cent each for market fees and Haryana Rural Development Fund (HRDF)— is charged in the mandis of the state at time of procurement of food grain. “The charges here are higher than other states like Madhya Pradesh (1.7%), Delhi (3%), UP/Uttaranchal (3%), Rajasthan (3.25%) and Punjab (4.5%). Apart from this, the labour charges and electricity charges for mills are also higher in Haryana. So, the Haryana government should reduce the market fee and other charges in order to ensure level-playing field with exporters of other states,” Jain said. A senior officer of Haryana government said that normally wheat export from the state has been done at the level of the Central government till now. “The Food Corporation of India (FCI) procures food grain on the behalf of the Central government and sends it to its godowns. Whenever the Central government gets an order for export, it asks the FCI for the same. Such a situation has emerged for the first time when less quantity of wheat has reached the mandis. This time, only a portion of the wheat has been sold in the mandis. There are farmers who have been holding on to their produce expecting higher prices in the future because of the volatile international scenario.” Export carefully, warn experts An expert of agricultural and food affairs, Devinder Sharma, suggested that the government keep an eye on the emerging international scenario and the possibilities of export. “When allowing export, we should make sure that India doesn’t face shortage of food grain in the coming months. Nearly two decades ago, the private companies were allowed to buy wheat. But later, the government did not get enough food grain from these players even to meet the demands from its Public Distribution System. Then the government had to import wheat at double the price. We should be careful that the same situation doesn’t repeat,” said Sharma.
