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Once again, the Rajasthan government has bestowed a gift upon the state's farmers following the budget announcement. This time, there news of an additional bonus being offered alongside the Minimum Support Price (MSP) for wheat procurement. The central government has also directed the commencement of wheat procurement at MSP rates before the stipulated time. Concurrently, the Rajasthan government is gearing up to distribute wheat under the free ration scheme, thereby preparing for wheat procurement. Although the promise of providing a bonus on wheat procurement was made during election campaigns. As per media reports, the state has declared a bonus of 125 rupees per quintal on wheat procurement above the MSP, which currently stands at 2,275 rupees per quintal.
Official sources state that under the National Food Security Act (NFSA), the Rajasthan government annually requires 27 lakh tons of wheat for distribution among beneficiaries. The state government is gearing up to procure around 20 lakh tons of wheat under the procurement scheme.
2014, the central government issued an order prohibiting states from announcing bonuses on MSP for wheat and paddy procurement. However, it was conditioned that if any state does announce a bonus, the center's procurement would be restricted to the actual requirement of the state for one year.
Private traders and mill owners in Rajasthan are hopeful that the government will continue to provide wheat under the open market sale scheme. This is because, with the bonus, farmers will sell wheat to the government. If market rates align with the MSP in other states, it will be advantageous for them to match the government rate. Traders have stated that they will monitor market rates closely this year. There's optimism for a good crop this year, expected to keep prices stable. However, if there's a decrease in production, wheat prices could exceed Rs. 2400 per quintal?
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