The Punjab State Agricultural Marketing board (Mandi Board) has shut nearly 400 paddy procurement mandis in six districts — Tarn Taran, Amritsar, Gurdaspur, Pathankot, Hoshiarpur, Kapurthala — and partially in Jalandhar on the directions of the state food and civil supplies department.
The move is part of the department’s efforts to keep total paddy arrivals restricted to 180 lakh tonnes, as mandated by the Centre’s ministry of food and public distribution.
However, officials in the department revealed that total arrivals could touch 190 lakh tonnes as the agriculture department had estimated a 7-to-10% higher yield.
At least 130 lakh tonnes of paddy have already arrived in the state’s mandis so far since procurement began on October 1, of which 98.5 lakh tonnes have been lifted. The crop is being procured for a minimum support price (MSP) of ₹2,461 per quintal.
Procurement is expected to continue until mid-November, with a total of 1,872 mandis and 761 temporary procurement centres handling arrivals across the state.
“It is for the first time that restrictions have been imposed on quantum of paddy arrivals. The cash credit limit (CCL) has also been allowed for only 180 lakh tonnes. If the limit is breached, fresh permission and funds will have to be sought from the Centre,” said a senior official, requesting anonymity.
{{/usCountry}}“It is for the first time that restrictions have been imposed on quantum of paddy arrivals. The cash credit limit (CCL) has also been allowed for only 180 lakh tonnes. If the limit is breached, fresh permission and funds will have to be sought from the Centre,” said a senior official, requesting anonymity.
{{/usCountry}}The state food and civil supplies department has received a CCL of ₹42,787 crore for paddy procurement. Anticipating a higher yield, with arrivals continuing in remaining districts, the department has already sent a communication to the central ministry.
The state’s total non-basmati paddy production — which is procured by government agencies for the public distribution system — is expected to exceed 220 lakh tonnes this season. The crop cutting experiments by the state agriculture department have predicted a 7-10% higher yield.
Given the historical trend of around 90% of the total production reaching mandis for procurement, the arrivals could surpass the Centre’s approved quota.
The state government’s concerns have been heightened by the Centre’s handling of excess paddy procurement in Haryana during the previous season. Against a quota of 36 lakh tonnes, Haryana procured 62 lakh tonnes in 2025, exceeding its approved limit by 26 lakh tonnes. The Centre’s refusal to accept the additional quantity has served as a warning for Punjab, which is now preparing to manage a potentially similar situation.