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This is an archive article published on December 16, 2011

To check irregularities,spoilage,MP registering its wheat growers

Farmers told crop will be procured at the MSP from only those who register in advance

Madhya Pradesh patted itself on the back for procuring a bumper stock of wheat last season but was forced to admit later that the process was chaotic and marred by spoilage and irregularities.

Wiser from the experience,the state has begun an ambitious exercise of registering the wheat growers months before the next season begins. Farmers have been told that wheat will be procured at the Minimum Support Price (MSP) from only those who register in advance.

When the farmers register themselves,information like name and address,size of land and possible produce among other things are being collected from them.

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So far,2,75,680 farmers have been registered and the process will continue till February 15. The registered farmers will be intimated by an SMS the date on which they are supposed to reach the procurement centres.

Last year,the experiment had worked well in a couple of districts in the state where it was introduced on a pilot basis.

In 2011,the state procured 50 lakh MT wheat against the original target of 35 lakh MT — thanks in part to a Rs 100 bonus it gave over and above the MSP of Rs 1,120 per quintal. After adding Rs 50-bonus given by the Centre,the farmers who sold in MP got Rs 1,270,the highest in the country.

The rise in procurement was phenomenal in that from a paltry 8 lakh MT in 2008,the number jumped to 50 lakh in 2011 — an increase of more than six times.

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Buoyed by the success of the last few seasons,MP has set a target of 60 MT in 2012. It ranks third after Punjab and Haryana,which still account for a lion’s share.

But the unprecedented success was not without its share of controversies. The additional bonus attracted farmers from bordering districts of other states for whom selling in MP made more sense.

The private players,who used to flock to MP centres given its premium varieties,turned to nearby states because they got wheat at much cheaper rate,Their absence,however,was not even felt during the season that saw long queues at the agricultural produce marketing yards across the state.

Chief Minister Shivraj Singh Chouhan,who loves to flaunt his ‘kisan putra’ image,had given instructions not to return anyone from the procurement centres.

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While the gesture was a political one,it took its toll on the process giving enough scope for officials to indulge in irregularities and stock manipulations.

Food Commissioner Deepali Rastogi said receipts are being given to farmers who register in advance in all 50 districts. They will be able to sell wheat only after showing the receipt that will have a code number. Basic information about a farmer will flash on the screen once this code number is entered in computers.

After a farmer sells his produce,he will be given another receipt that will have details of wheat’s quantity and the quantum of MSP and the bonus component. Banks will make the payment on the basis of this receipt.

Harda has topped with 28,915 registrations so far followed by Vidisha at 26,982 and Hoshangabad at 16,217.

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While MP celebrated the numbers,its pathetic storage capacity was exposed badly. The state was ill-equipped to store even one-third of what it procured in the last season.

Even today,more than six months after the season was over,wheat is rotting at several places like Harda,Piparia,Gadarwada either in open or in godowns. Even the capital has not been spared the sight of rotting wheat.

The process was marred by several irregularities with APMC officials indulging in corruption in league with farmers as well as bank officials. At some places,the wheat quantity turned out to be much less than what the payment was made for.

In places like Harda,farmers were paid for 800 quintal when their entire land could have produced only 200 quintals. Either they sold someone else’s wheat or were paid more money only to be shared with officials.

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The state government kept blaming the Food Corporation of India (FCI) for not lifting the surplus stock despite sending reminders. The FCI responded by saying that it was the responsibility of the state to protect the wheat till it was procured for the Central pool. The FCI had observed that the Private Entrepreneurship Guarantee (PEG) scheme meant to create additional storage space had not worked well here.

Since the last few months,the state government claimed to have undertaken a massive exercise to increase the storage capacity by involving the private sector. Though there are a few months left for the next season to begin,it will be a Herculean task for the state to create the additional space required to store 60 MT and the leftover from previous seasons.

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