Punjab to wrap up procurement as arrivals hit nine-yr low

Just 156 lakh tonnes of paddy has been procured, nearly 25 lakh tonnes less than the estimated arrivals of 180 lakh tonnes

The state food and civil supplies department has decided to wind up the paddy procurement operation this week amid negligible arrivals. This year, the arrivals and the subsequent procurement have been the lowest in the past nine years. Just 156 lakh tonnes of paddy have been procured, nearly 25 lakh tonnes less than the estimated arrivals of 180 lakh tonnes.

This year, the arrivals and the subsequent procurement have been the lowest in the past nine years (Representational Image)

It is the lowest crop yield in the past nine years since 2016, when the paddy arrival was restricted to 140 lakh tonnes. In the previous five years — 2024, 2023, 2022, 2021, and 2020, total paddy procured stood at 175, 188, 183, 187, and 162 lakh tonnes.

The floods and incessant rains in the month of August-September impacted the production with the loss in terms of grain quantity pegged at 15%, which in financial terms translates to nearly ₹10,000 crore.

“We are shutting down the paddy procurement operations,” confirmed food and civil supplies minister Lal Chand Karatuchak. The current procurement season has been the longest, running since September 16.

Not only the quantity, the quality of the crop has suffered, with the percentage of discoloured and damaged grains being more than the permissible limits of 5%. The floods destroyed crops across 2.97 lakh acres, while incessant rainfall and a subsequent outbreak of loose smut disease further hit paddy yield. The decline in grain production is despite the area under paddy rising by 1.5 lakh hectares to 32.49 lakh hectares this season.

At the onset of the season in July–August, the department has made arrangements for procuring 185 lakh tonnes of paddy and has also arranged a sanction of cash credit limit (CCL) of ₹45,000 crore. “Now we think the crop procurement would not cost more than ₹35,000, which means a straight loss of ₹10,000 crore to the farmers,” said an official of the food and civil supplies department. The commission for agricultural costs and prices (CACP) has fixed a minimum support price (MSP) of ₹2,389 per quintal on paddy purchased in the current season.

Last week, the Union ministry of food and public distribution allowed relaxation in procurement norms by allowing the purchase of produce with up to 10% discoloured and damaged grain, from 5%. The relief came after the majority of the crop, 150 lakh tonnes, had already been procured.

GFX

In Numbers

156.40 lakh tonnes

Total Paddy arrivals

156.30 lakh tonne

Procured so far

₹36,780 crore

MSP distributed to farmers

₹49,987 crore

Total Cash Credit Limit