Madhya Pradesh’s aggressive procurement of wheat, driven by the desire to reduce dependency on the Centre in the election year, has saddled it with so much stock that it is knocking on the doors of Maharashtra to store the surplus grain.
The Government has paid Rs 1,058 crore to farmers in procuring about 19.28 lakh MT of wheat — last year’s procurement was less than 50,000 MT — since the procurement began on March 1 at 925 centres across the state. There are clear instructions not to send farmers away, so the procurement will go on for more time, probably till it rains.
Farmers are obviously happy because the state is paying them Rs 100 in bonus over the MSP of Rs 1,000. But in its zeal to procure as much as it can, the Government had failed to book private warehouses, which are not available now. The state can store only 11 lakh MT in its godowns and the FCI’s capacity is hardly 4.2 lakh MT. FCI sources said even after hiring private godowns, their capacity won’t exceed 6 lakh MT.
Wheat is lying in the open at some places because rakes are not available for transportation. The state’s biggest worry is that unseasonal rains and early monsoon could play a havoc. The distribution of this wheat will begin only from July 1.
For the first time, collectors have been empowered to acquire private places to store the grain. “We have written to the FCI to allow us to send the surplus to Manmad in Maharashtra,” commissioner of food and civil supplies K P Singh told The Indian Express on Tuesday. He said private godowns could store up 25 lakh MT but most of them were already booked.
If procurement continues at the present rate, the state will be left with at least 4 lakh MT surplus stock. Besides the FCI and the state civil supplies corporation, Markfed is also involved in procurement. Unlike last year when different agencies were allotted districts, there are no restrictions this season, one of the reasons why procurement was fast and in large quantities.
The state requires about 20.3 lakh MT wheat for schemes like PDS and mid-day meal. Obviously, the state would like to keep at least that much within the state because that was the basic idea.
An FCI official said the corporation could transport the surplus wheat to southern states but the state Government would have to take the call. “Since MP is the only state to have paid Rs 100 in bonus, it will have to come out with a clear policy on where to transport the surplus,” he said.