Wheat procurement, MSP fell due to geopolitical situation: Govt

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IANS | 25 Oct, 2022
Wheat procurement as well as its minimum support price (MSP) to farmers and also number of farmers benefiting from minimum price fell in 2022-23 Rabi marketing season due to prevailing geopolitical tensions.

According to official sources, wheat procurement in the current season of 2022-23 fell by 56.64 per cent compared to 2021-22 season.

In 2022-23 Rabi season, wheat procurement was only 187.92 lakh metric tonnes (LMT) down by 56.64 per cent from 433.44 LMT procured in 2021-22.

Similarly, in the current Rabi season of 2022-23, Rs 37,865 crore worth MSP was given to farmers, which was 55.76 per cent less than Rs 85,604 crore worth MSP which was given in 2021-22.

Resultantly, due to reduced procurement, the number of farmers who benefitted from it, also came down during the current Rabi season.

While in 2021-22, 49.20 lakh farmers benefited from higher wheat procurement, in 2022-23 only 17.83 farmers could benefit through procurement.

Sources pointed out that reduced wheat procurement in the 2022-23 Rabi season was due to increase in market prices as well as demand and supply mismatch owing to the prevailing geopolitical situation, arising out of Russia-Ukraine war.

They added that the market price remained continuously higher than the MSP throughout the procurement period across the country.

This would help farmers get higher remuneration for their produce, sources pointed out.

Observers said that due to fairly good rainfall condition, it's expected that wheat production and procurement in the next Rabi season shall remain normal.