April 11, 2011
 

Indian state pays US$230 million to wheat cultivators

The Madhya Pradesh government has placed an amount of INR1,000 crore (US$230 million) to the Indian state wheat cultivators' accounts against payments for wheat acquiring and additional bonus.

State government sources said this before the Union government's Budget announcement for paying minimum support price and bonus or subsidies through bank accounts. The state has also declared a bonus of INR100 (US$2.26) per quintal for wheat.

"This year, we have adopted a system to protect farmers from any delay in payment or middlemen. The money against bonus and procurement has been transferred directly to their accounts," said a senior government official.

The state government had last week asked bankers to make the process easier for farmers. "The state government had last year paid INR4,200 crore (US$950 million) for 3.8 million tonnes of wheat procurement of which INR350 crore (US$79 million) were paid to the farmers as bonus," said the official. "Central government had made an announcement to adopt this system from next year but we are the first state to implement this system from current rabi season," the official added.

Against the target of 3.5 million tonnes of wheat acquiring, to date 850,000 tonnes have been acquired. The procurement process will last until May 31 this year. Madhya Pradesh grows some of the best varieties like Sharbati, Durum and Lok-1 which are high in protein content.

Malwa and Mahakaushal belts are the main areas that cultivate wheat. This year, the wheat output is probable to hit 9.5 million tonnes.