After record wheat produce,storage problems crop up

Delay in execution of the centrally sponsored Private Entrepreneur Godown scheme for creating 26 lakh MT capacity by the UP State Warehousing Corporation (UPSWC),the nodal agency,is part of the problem. The scheme,to be implemented on the PPP model,was announced in the first year of the 11th five-year plan. It was scheduled to be completed within the plan period ending March 31 next year. The project is still on the drawing board.

UP has set a target of procuring 40 lakh MT of wheat from farmers under MSP for the central pool in the 2011-12 rabi season. Six agencies of the state government and three central agencies — FCI,NAFED and NCCF — will procure the wheat. Though the price of wheat in the open market is higher then the MSP of Rs 1,120 per quintal announced by the Centre for this rabi season,the UP government is confident it can meet the target. In 18 major mandis across the state,the average wheat price in the open market is between Rs 1,130 to Rs 1,200 per quintal.

“The target of 40 lakh MT,largely for meeting PDS requirements of the state,is realistic and achievable. As far as the difference between the MSP and open market price is concerned,the market will crash with the arrival of the fresh crop in the mandis,” said Shukla. “Even if the price in the open market remains higher,we are happy as the government’s objective of ensuring remunerative price to the farmers is achieved.” He added: “The Centre has allowed wheat exports. This may push up the price in the open market,but we are hopeful that we will be able to procure 40 lakh MT from the farmers at MSP.”

After Punjab and Haryana,UP is the largest contributor of wheat for the central pool.