Indian FPOs wheat procurement, a success story this year
Nine FPOs in Rajasthan, mainly from Hanumangarh, have procured over 40,000 tonnes of wheat this season—70% above their target. This success, aided by government cooperative NCCF, may reduce reliance on private players in procurement. Experts suggest replicating this model nationwide and call for Cabinet approval to officially include FPOs alongside agencies like FCI and Nafed in crop procurement.
In the ongoing procurement season, some nine FPOs in Rajasthan, mostly from Hanumangarh district, have procured over 40,000 tonnes of wheat. This is about 70 per cent higher than their combined target. Seen as a success story, this may help the government to promote FPOs as an alternative agency for the procurement in the long run, reducing dependence on private sector, millers and commission agents, experts said.
The government-owned cooperative NCCF roped in the services of some FPOs in Rajasthan as the government was keen to procure the targeted 20 lakh tonnes (lt) of wheat this season once the procurement began on March 10, official sources said. As of May 20, these FPOs have sold wheat worth over ₹100 crore by mobilising the crop from their farmer-members as well as other farmers for the Central Pool stock, the sources added.
“Rajasthan is a success story which should be replicated in phases in other states for the procurement of wheat and paddy. The main issue is lack of a whole of government approach to allow FPOs procure the crops for the Centre,” a former top official of FCI said, adding that the Cabinet approval should be taken to include FPOs as an alternative agency in procurement, besides the FCI, Nafed, NCCF and other agencies.
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Source : The Hindu Business line
