Labour shortage hits wheat procurement in India - by Kv222222
A serious shortage of migrant labour from Bihar, Jharkhand and Uttar Pradesh is slowing the Indian government’s efforts to buy wheat in Punjab and Haryana. This could, despite a record harvest, derail its plans to replenish the country’s food stocks and cool inflationary pressures.These two states account for more than 90% of the government’s annual purchase of wheat, which is then sold at subsidized prices to the poor. On 6 April, the Central pool that includes stocks the Food Corporation of India, or FCI, and state governments maintain, had 5.79 million tonnes, or mt.
The government has estimated that this year India will touch a new high of 76.8mt in the rabi, or winter crop, season. Farmers, commission agents and state officials at the grain markets in Punjab and Haryana estimate the total arrival of wheat to be 20-25% more than last year.
But, scarce labour is hurting purchase.
Thanks to the government’s minimum support price of Rs1,000 per quintal, or 100kg, up from Rs850 last year, farmers want to sell only to FCI and not local flour mills or any other private company.