The government of India has been striving to ensure food security for its citizens by procuring grains such as wheat and rice from farmers at minimum support prices (MSP). However, the recent data released by the Ministry of Consumer Affairs, Food, and Public Distribution reveals a worrying trend. The wheat procurement by the government has gone down by 18% at 41 lakh tonne, as compared to last year's figure of 50.05 lakh tonne. While this news may be disheartening for farmers, there's some respite in the form of improved arrivals in mandis.
What are the reasons behind the decline in wheat procurement by the government, and how will it impact farmers and consumers? Let's delve deeper into this issue.
Reasons behind the decline in wheat procurement
There could be several reasons behind the decline in wheat procurement by the government. Some of them are:
Reduced acreage: As per the data provided by the Ministry of Agriculture and Farmers' Welfare, the wheat sowing area during the 2021 Rabi season has decreased by 2.74% as compared to the previous year. This reduced acreage could be one of the primary reasons behind the decline in procurement.
Higher MSP: The government has increased the MSP of wheat by Rs 50 per quintal for the 2021-22 season, which may have discouraged farmers from selling their produce to the government. They might have preferred to sell their grains in the open market, where they could fetch better prices.
Covid-19 pandemic: The pandemic has disrupted the supply chain and logistics operations, which could have impacted the procurement process. Additionally, the farmers might have faced challenges in transporting their produce to the mandis due to the restrictions and lockdowns imposed by the government.
Impact on farmers and consumers
The decline in wheat procurement by the government could have a significant impact on farmers and consumers. Let's look at how:
Impact on farmers
Financial losses: Farmers who were expecting to sell their grains to the government at MSP might have to sell them in the open market at lower prices. This could lead to financial losses and impact their livelihoods.
Dependence on private traders: Due to the reduced procurement by the government, farmers might have to rely more on private traders to sell their produce. This could lead to exploitation and lower prices for their grains.
Reduced trust in government: The decline in wheat procurement by the government could lead to reduced trust among farmers, who might feel let down by the government's promises of providing MSP.
Impact on consumers
Price hike: The reduced procurement by the government could lead to a shortage of wheat in the market, which could cause a price hike. This could impact the affordability of wheat for consumers, especially those from lower-income groups.
Dependence on imports: If the domestic production of wheat is not sufficient to meet the demand, the government might have to resort to importing wheat, which could be more expensive and impact the economy.
Improvement in arrivals in mandis
While the decline in wheat procurement by the government is a cause for concern, there's some respite in the form of improved arrivals in mandis.https://ift.tt/sPwlerR
