Some nine FPOs in Rajasthan, mostly from Hanumangarh district, have procured over 40,000 tonnes of wheat
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In the ongoing procurement season, some nine FPOs in Rajasthan, mostly from Hanumangarh district, have procured over 40,000 tonnes of wheat. This is about 70 per cent higher than their combined target. Seen as a success story, this may help the government to promote FPOs as an alternative agency for the procurement in the long run, reducing dependence on private sector, millers and commission agents, experts said.
The government-owned cooperative NCCF roped in the services of some FPOs in Rajasthan as the government was keen to procure the targeted 20 lakh tonnes (lt) of wheat this season once the procurement began on March 10, official sources said. As of May 20, these FPOs have sold wheat worth over ₹100 crore by mobilising the crop from their farmer-members as well as other farmers for the Central Pool stock, the sources added.
Success story
“Rajasthan is a success story which should be replicated in phases in other states for the procurement of wheat and paddy. The main issue is lack of a whole of government approach to allow FPOs procure the crops for the Centre,” a former top official of FCI said, adding that the Cabinet approval should be taken to include FPOs as an alternative agency in procurement, besides the FCI, Nafed, NCCF and other agencies.
There are some decontrolled procurement (DCP) States in which the responsibility of the purchase of crops entirely lies with the State government, which makes the plan and arrangement in consultation with the FCI -the custodian of grains purchased for the Central Pool. However, for the non-DCP States, procurement responsibility lies with FCI or any other Central agency nominated by the government.
In Rajasthan, the Centre has procured 17.79 lt until May 20 against 9.44 lt a year ago. There are FPOs such as Bashir Agro that have purchased 5 times more than their target of 2,200 tonnes, while Akshay Velly three times the target and Apaar Shakti double the target.
On the other hand, Hardayalpura Farmer Producer Company, an FPO of Hanumangarh, was given a target to purchase 8,600 tonnes from three centres including one procurement centre in neighbouring Sriganganagar district. It has bought 5,512 tonnes so far, and could add another 1,000 tonnes.
Payment delays
“There are payment delays for our farmers, though we had promised to clear the payment in 24 hours. Whereas the farmers who sold at the purchase centres run by FCI received the payment promptly,” said Pravin Godara, CEO of Hardayalpura FPO. He said the FPO is ready to participate in the FCI tender to purchase the crop if the three-year prior experience clause is removed. It will also offer to buy at a commission, which will be competitive and help the government to save money.
When a purchase centre within 10 km distance makes the payment promptly, why will farmers not rush there, Godara wondered, and suggested suitable changes so that FPOs can directly buy the produce for the government.
Beside purchasing the grains at the minimum support price (MSP), the Centre also bears additional expenses on account of mandi (agri-market yard) fees and other statutory charges levied by State government, commission to arthiyas (commission agents) and cooperative and other societies, gunny bags, mandi labour and many other charges which inflate the procurement cost by 13 per cent from MSP level in case of wheat and more than 15 per cent in case of rice.
Published on May 21, 2025