Big private companies like ITC and other bulk consumers will now be allowed to procure wheat directly from farmers in Uttar Pradesh at the minimum support price (MSP) of Rs 1,100 per quintal.
The state had barred private purchasers from the procurement process in 2007, as it was affecting government procurement, since the former offered better price to farmers.
Giving its nod to the 2010-11 wheat procurement policy, the state Cabinet has permitted ?private wholesale traders and companies? to purchase wheat on certain conditions so that farmers could get good remuneration, a government spokesman said.
One of the conditions stipulated for private companies is that they will make payment of the wheat only through account payee cheques so as to ensure transparency. The state government has directed its agencies to procure around 39 lakh tonne of wheat while Food Corporation of India would procure another 1 lakh tonne, the spokesman said, adding the procurement would start from April 1 and continue till June 30.
Uttar Pradesh annually needs around 40 lakh tonne of wheat for its public distribution system. Deciding to set up a total of 4,406 purchase centres in the state under various departments, the government has also stated that it would be ensured that farmers do not have to travel for more than 7 km for selling their produce.
?Wheat would be procured on Kisan Bahi (farmers book), farmers? credit cards and passbooks,? the spokesman said adding while big farmers would be issued tokens, small and marginal farmers have been exempted from it and Sundays and Wednesdays have been reserved for them though they would be given priority on other days also.
However, farmers in the state have requested to chief minister Mayawati to announce a bonus Rs 100 per quintal over and above the Centre fixed MSP as being paid by the Madhya Pradesh government.
?Despite the drought and floods, farmers in UP have produced a bumper crop. But unfortunately, they are now facing the prospect of selling their produce at Rs 200 per quintal less than the MSP of Rs 1,100 per quintal declared by the central government due to shortcomings in the procurement system. We therefore request the CM to announce a bonus of Rs 100 per quintal,? VM Singh, convenor of the Rashtriya Mazdoor Kisan Sangathan said.