Madhya Pradesh farmers struggle to make the most of soaring wheat prices
Water scarcity hits wheat yields in Rajgarh, Madhya Pradesh, with farmer Dwarka Prasad Meena experiencing a 20% drop in production. Despite the state aiming for 8 million tonnes procurement, only 3.7 mt acquired by May 2, a 37.2% decrease from last year. Bonus-induced MSP of Rs 2,400 per quintal fails to entice farmers as market rates soar, with ‘Lokwan’ fetching Rs 2,900-3,150 and ‘Poorna’ at Rs 2,650-3,000 per quintal.
Dwarka Prasad Meena, a farmer at Bhainswa village in Madhya Pradesh’s Rajgarh district, is grappling with water scarcity that has severely impacted his wheat harvest. Despite his best efforts, yields have plummeted by at least 20 per cent on his farm.
Meena, who cultivates wheat on approximately 20 acres, says that inadequate rainfall and poor irrigation systems have also affected his coriander crop. As the state prepares for the third phase of polling on Monday, the issue of dwindling wheat production has become a hot topic among farmers. Madhya Pradesh had set a target to procure around 8 million tonnes (mt) of wheat from farmers for the central grain pool this year (2024-25). However, as of May 2, only about 3.7 mt have been procured, marking a 37.2 per cent decrease compared to the same period last year.
In the 2023-24 marketing year (April to March), the state procured around 7.09 mt of wheat throughout the season. Across the country, wheat procurement until May 2 stood at 22.10 mt, a decrease of around 4.9 per cent compared to the same period last year, with Madhya Pradesh leading the decline.
This dip in procurement has occurred despite the state government announcing a bonus of Rs 125 per quintal over and above the Centre-fixed minimum support price (MSP) of Rs 2,275 per quintal for the 2024-25 purchase season. This means that wheat from Madhya Pradesh farmers is being procured at a price of Rs 2,400 per quintal, while the MSP is Rs 2,275 per quintal.
Nityanand Roy, team leader of the grains desk at agritech startup Agriwatch, says here are several reasons for the drop in procurement. “Farmers are holding on to their produce in anticipation of an even better price sometime in the next few months. I estimate that almost 30-35 per cent of farmers in MP are still holding on to their wheat,” he says.
The price of the ‘Lokwan’ wheat variety in
Madhya Pradesh’s Indore mandi is quoted at Rs 2,900-3,150 a quintal, while the ‘Poorna’ variety is quoted at around Rs 2,650-3,000 per quintal. These rates are significantly higher than even the bonus-induced MSP of wheat in MP, which is Rs 2,400 per quintal.
Recommended for you
