MP ends state role in wheat-paddy procurement:CM Yadav asks Centre for FCI takeover, citing heavy losses and risks of farmer exploitation.

The Madhya Pradesh government has refused to continue its own procurement of wheat and paddy for the upcoming season, citing a mounting debt burden of ₹77,000 crore on the Civil Supplies Corporation (Nagrik Apurti Nigam—NAN). Chief Minister Dr. Mohan Yadav has written to Union Minister for Parliamentary Affairs, Coal, and Mines Prahlad Joshi, urging the Centre to allow the Food Corporation of India (FCI) to directly procure wheat and paddy from the state’s farmers. Currently, under the decentralized procurement system, the state government purchases the foodgrains from farmers and later hands them over to the FCI. If the Centre accepts the MP’s proposal, this system will end, and the FCI will procure directly from farmers, removing the Civil Supplies Corporation from the process entirely. CM’s letter cites mounting losses In his October 1 letter to Prahlad Joshi, CM Mohan Yadav highlighted that the current procurement system has become financially unsustainable. In recent years, wheat procurement has reached 77.74 lakh metric tonnes, while paddy procurement stands at 43.49 lakh metric tonnes. The state has borrowed ₹72,177 crore from banks to run the scheme, but delayed reimbursements from the Centre and slow disposal of stock have worsened the financial strain. The CM argued that switching to a centralized system would prevent further losses and ease the debt load on the state exchequer. Three reasons behind the decision Officials from the Civil Supplies Corporation listed three major reasons behind the decision to withdraw from decentralized procurement: Officials defend move; experts disagree Civil Supplies Corporation MD Anurag Verma said the proposed change would not affect farmers or the public. “Earlier too, procurement was done directly by the Centre. This time, only the system will change — not the benefits to farmers. The move will save the state’s funds,” he said. However, retired officials and experts have raised concerns. Anil Vajpayee, convener of the MP State Corporation Board Officers-Employees Association, blamed years of mismanagement for the corporation’s collapse, saying it now pays over ₹11 crore in daily interest. Fear of farmer exploitation under FCI Experts warn that FCI’s strict quality norms could result in rejection of large quantities of farmers’ produce. Shyam Sundar Sharma of the Corporation Board Coordination Federation said, “The state’s officers earlier worked in farmers’ interest, but FCI will not care whether their grain is sold or not. This may push farmers to sell to private traders at throwaway prices.” The final decision now rests with the central government, which will determine whether wheat and paddy procurement in Madhya Pradesh will remain decentralized or shift entirely under FCI’s control.