Punjab to put a cap on per acre yield of paddy

Introducing changes in the procurement system, Centre’s food and public distribution ministry has asked Punjab to ascertain how much paddy per acre is expected for purchase

The Punjab food and civil supplies department is working on putting a cap of 34 quintals on the paddy yield per acre of crop.

The Punjab food department is working on a consensus for a cap of 34 quintals per acre of paddy yield. (PTI)

This is mandatory under central norms that call for integrating land records with grain procurement, to be implemented for the first time in the state.

Introducing changes in the procurement system, Centre’s food and public distribution ministry has asked the state to ascertain how much paddy per acre is expected to be purchased by state agencies and the Food Corporation of India (FCI).

This would help rein in the illegal practice of pilferage and sale of recycled rice, transported from other states at a cheaper price and mixed with freshly procured paddy for bigger profits.

Fixing of per acre yield will also come as an end to the Centre’s open-ended procurement policy, under which the government buys every grain of wheat and rice brought by farmers, far more than the annual requirement, leading to heavy storage costs and subsidy burden.

Average limit to be determined

A district-wise report, sought by the state government from the agriculture department, had found a state-wide cap on the yield unfeasible, as there are variations across districts. So, the plan now is to determine an average figure.

This year, paddy has been sown over 72.5 lakh acres. Of this 12 lakh acres are occupied by basmati.

For procurement, the agriculture department had pegged the total paddy arrival at 190 lakh tonnes, for which a Cash Credit Limit (CCL) of ₹35,700 crore has been received from the Reserve Bank of India.

“No concrete decision on the limit for yield has been reached yet. We are working on a consensus for a cap of 34 quintals per acre. This will satisfy the farmers and also follow the rule book,” said an official of the state food department, not willing to be named.

But RS Cheema, representing a section arhtiyas as president of the association, said, “Even in the beginning of the procurement process, the purchase agencies are not buying more than 25 quintals. Where will farmers sell the remaining stock?”

Contradicting Cheema, an officer of the Punjab Mandi Board, the agency that regulates food grain purchase in state’s 3,000 mandis, said, “The initial arrivals are of the early varieties, which give an average per acre yield of 22 to 25 quintals. After October 10, we are expecting the late varieties with yield of around 35 to 40 quintals,” he said, requesting anonymity, adding that the issue will be addressed then.

Land records being linked to database

Meanwhile, the state government has completed the process to integrate land record with grain procurement, for 10.5 lakh farmers.

Centre had made it compulsory for Punjab to carry out procurement only after taking land details from farmers, who will get the payment (MSP) for their produce (wheat and paddy) only when the revenue record of their agriculture land is linked with the Public Finance Management System (PFMS).

In rabi (wheat) procurement season this year, the state had started the Direct Benefit Transfer (DBT) system through PFMS, by transferring crop payment directly into farmers’ bank accounts, bypassing the traditional system of routing payment through the arhtiyas (commission agents).