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MP and Rajasthan declares Bonus for wheat grower

Utkarsh Classes 21-03-2024
MP and Rajasthan declares Bonus for wheat grower Government Scheme 6 min read

Rajasthan and Madhya Pradesh governments have announced a bonus of Rs 125 per quintal on wheat to be procured during the forthcoming Rabi season (April-June)2024. The central government has announced a minimum support price (MSP) of Rs 2275 per quintal for wheat for the 2024-25 marketing season. Wheat farmers will be paid Rs 2400 (2275+125)per quintal in these two states.

Madhya Pradesh is the second biggest contributor to the government of India’s wheat procurement after Punjab. 

Last year, the government of India’s agencies procured 26.2 million tonnes of wheat. Madhya Pradesh contributed 7.09 million tonnes to the total procurement. This year, Madhya Pradesh set a target to procure 8.2 million tonnes of wheat during the Rabi 2024 season.

The state government's announcement of the bonus on wheat is expected to help the government meet its procurement target.

Although the official procurement of wheat for the rabi marketing season commences on April 1, the state agencies and FCI have commenced purchasing wheat from the farmers under the Minimum Support Price (MSP) operations in Madhya Pradesh and Rajasthan. So far, 983 tonnes of wheat have been purchased from the farmers in these two states.

In Punjab and Haryana, the wheat procurement on MSP will start on 1 April 2024 Punjab is aiming to purchase 13 MT of wheat in the new rabi marketing season.

India's government has targeted procuring 30-32 million tonnes of wheat for the 2024-25  marketing season.

Decline in wheat buffer stock of the government

The buffer stock maintained by central government agencies like the Food Corporation of India(FCI) has recently reached an eight-year low.

According to the newspaper report, the Food Corporation of India (FCI) held 8.02 Million tonnes of wheat stock as of 20 March 2022. It is the lowest buffer stock since 2016. The buffer stock is close to the buffer stock target of 7.46 Million tonnes for 1 April 2024.

The main reason for the decline in the wheat buffer stock has been 

  • Low procurement last year. Last year, the government of India’s agencies procured 26.2 million tonnes of wheat, which was against the target of  34.15 million tonnes. 
  • Open-market operation. To bring down wheat prices in the market, the government of India has been selling wheat from its buffer stock for the last two years. This open-market operation has substantially depleted the government stock.
  • The farmers are not selling the wheat to the government as the market price is higher than the MSP. They are selling it to the private traders.

The price of wheat in the international market has fallen recently after a two-year high. But in India, the price of wheat has shown no decline.

What is Buffer Stock? 

  • The concept of buffer stock was introduced during the 4th Five Year Plan (1969-1974). 
  • Buffer Stock refers to the food grains (wheat and rice) maintained by the Food Corporation of India (FCI).
  •  The FCI procures food grains from registered farmers at the minimum support price announced by the government of India. 
  • At the beginning of each quarter, the central government prescribes the minimum quantities of buffer stock to be maintained in the Central Pool.

Use of the Buffer Stock 

The central government uses the buffer stock for 

  • providing wheat and rice to the state government for distribution amongst the beneficiaries of the National Food Security Act. 
  • For market intervention to bring down the price of wheat and rice in the market
  • To deal with emergency situations due to natural calamities like drought, floods, earthquakes etc.
  • For export purposes 
  • Any other purpose as desired by the government.

Wheat Production and India 

  • India is the second largest producer of wheat in the world after China.
  • According to the government of India, the total wheat production in the country in 2022-23 is estimated at a record 1105.54 Lakh tonnes.
  • Uttar Pradesh is the largest wheat-producing state in India, followed by Madhya Pradesh and Punjab.


Answer: Madhya Pradesh and Rajasthan

Answer: Rs 2275 per quintal.

Answer: Madhya Pradesh. Punjab is the largest contributor.

Answer: India is the second largest producer after China.

Answer: Uttar Pradesh, followed by Madhya Pradesh and Punjab.

Answer: 30-32 million tonnes.
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