Rajasthan plans to offer a bonus of ₹ 125 per quintal for procurement of wheat.

The Center sees no problem in Rajasthan after the state announced a ₹125 per quintal wheat procurement surcharge on top of the ₹2,275 per quintal MSP as its purchase is likely to be less than the actual public marketing requirement system, While the Rajasthan government requires 27 lakh tonnes of wheat annually to distribute among beneficiaries under the National Food Security Act (NFSA), the state government is likely to buy around 20 lakh tonnes of wheat under the procurement plan, official sources said.

Increase in PM-KISAN Program

As promised before the BJP polls, the Rajasthan government last week announced a wheat procurement price of ₹ 2,400/quintal for the upcoming season from April 1. – ₹ 2,000 premium to farmers under the Centre’s flagship scheme PM-KISAN over ₹ 6,000 per annum currently paid. In 2014, the Center issued an order barring states from declaring premiums beyond the maritime space they used to buy wheat and paddy from farmers. However, it stipulated that if any country announces a reward, the acquisition of the center will be limited to the real need of the country for a year. In 2023-24, the Center procured 4.38 liters of wheat from Rajasthan against 0.1 liters in 2022-23. Due to lower production and crop losses, the open market prices of wheat have prevailed in the last two years, resulting in purchases across the country at a level below the Centre’s target. However, in 2021-22, record wheat was received and the Center bought 23.4 liters from Rajasthan.

Strategy of Traders

After the announcement of the bonus, private traders and millers expressed confidence that the government will continue to release wheat under the open market sales system, because they have a disadvantageous access to the national exchange rate in an open market. the rates at which other countries control maritime space. “We are waiting to see how the market rates will evolve this year, as a good harvest will not allow prices to rise. However, if the harvest declines and production declines, prices may even rise above ₹ 2,400/quintal as seen earlier,” said a flour producer. . If government procurement stops, the market price may rise to normal levels and traders will take the call.

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