Home›Procurement News›India : CENTRAL GOVT. allows state to procure higher quantities of damaged wheat
Procurement And Tender News
Tendersinfo keep you informed about the latest events in the national and international Procurement Industry. Procurement News provides in-depth coverage of the procurement industry, including contract awards, contract additions, new contract wins, mergers and acquisitions. Tendersinfo through its tender news section provides an update on all domestic and global tendering opportunities, invitation to bid & trade leads.
India : CENTRAL GOVT. allows state to procure higher quantities of damaged wheat
Publish Date : 08-Apr-2015
The Center has allowed the Indian state of Madhya Pradesh (MP) to purchase increased quantities of lusterless, shriveled and broken wheat, considering the damage caused to crops by bad climate.
There will be a reduction prices against purchase of damaged crop, but the state government is now allowed to procure lusterless wheat up to 40%, shriveled and broken wheat up to 10% of its total purchase of the grain.
A senior official of state food and civil supplies department said, although the Center has prescribed to pare Rs 7.25 per quintal against each percentage above the prescribed allowable limit, the state government would pay the farmers from its own resources. Due to this they will receive the minimum support price of Rs 1,450 per quintal.
MP was so far allowed to procure only 20% of lusterless wheat and 6% of shriveled and broken wheat.
The official add that this would put a further financial burden of Rs 40-50 crore on state kitty in the complete procurement exercise and it would depend how much wheat reaches state procurement centres.
MP has said it will buy 10 million tonnes of wheat. Nearly 34 districts have reported crop loss on an area of 4,29,660 hectares, in March 2015.
Although the state has expected 20 million tonnes of wheat this year, the crop damage may reach Rs 2,123 crore and various districts have demanded a relief of Rs 398 crore.