New Delhi, Jun 10 (IANS): The Ministry of Consumer Affairs, Food and Public Distribution said on Friday that the wheat farmers across the country benefited more in this season as majority of them sold their produce to the private traders at a higher market rate in comparison to the Minimum Support Price (MSP) value.

"It has been reported that during this season, the farmers sold their produce at an average rate of Rs 2,150 per quintal, thereby earning more on selling their produce in the open market as compared to the MSP value," the ministry said.

Accordingly, on the estimated procurement quantity of 444 lakh MT, on an average, the farmers may have earned around Rs 95,460 crore at the rate of Rs 2,150 per quintal, instead of Rs 89,466 crore at the MSP of Rs 2,015 per quintal. Thus, the wheat farmers may have overall got Rs 5,994 crore more compared to the MSP.

The downward trend in public procurement is attributed to the significantly higher purchase of wheat by private traders as wheat price in the international market has shot up due to global demand-supply mismatch on account of the prevailing geopolitical situations.

The market price of wheat remained higher than the MSP throughout the procurement period across the country, i.e., around Rs 2,100 to Rs 2,500 per quintal.

According to the government, wheat procurement in the current season is down by 58 per cent, missing the initial estimates of 444 lakh MT. It is expected that the procurement of wheat during RMS 2022-23 may touch only up to 190 lakh MT by the end of the season.

The estimates of wheat procurement were kept at 444 lakh MT on the basis of decisions taken in the state food secretaries' meeting held in February, before the commencement of current RMS 2022-23. The total procurement of wheat last year during RSM 2021-22 was 433.44 lakh MT.

To ensure remunerative price of the produce for the farmers, the MSP of 22 mandated agricultural crops is announced by the government at the beginning of the sowing season. The MSP is finalised on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP) which is determined keeping in view the input costs and margin to farmers.