Govt reiterates paddy procurement targets for 2024-25 season in Punjab, Haryana

By Abhimanyu Sharma

The Union Government has reiterated its commitment to achieve paddy procurement targets, with not a single grain being left unprocured in the states of Punjab and Haryana. Earlier, the government had projected an estimated target of 185 lakh metric tonnes (LMT) and 60 LMT of paddy procurement in Punjab and Haryana respectively in the Kharif Marketing Season (KMS) 2024-25. Both these northern states account for around 40% of the central pool procurement which is currently underway.

Though the procurement of paddy commenced on October 1 in Punjab and September 27 in Haryana, heavy rainfall during September followed by higher moisture content in the crop delayed the harvesting and subsequent procurement. However, the government has expressed confidence over completion of paddy procurement by November 15 in Haryana and November 30 in Punjab.

As per government data, 10 lakh farmers in Punjab and 4.06 lakh farmers in Haryana so far have registered to sell their produce in KMS 2024-25.

In Haryana, 45 LMT of paddy was procured till October 29 this year, which is 87% of the 52 LMT procured till October 29, 2023. 67 LMT of paddy had been procured in Punjab till October 29 this year, which is 80% of the 84 LMT procured last year till the same date.

Compared to the previous year, the government has indicated that the procurement of paddy in Haryana and Punjab is similar compared to the pan-India procurement in percentage terms. Out of the 4400 millers who applied for delivery of Custom Milled Rice (CMR), work has been allotted to 3850 millers by the state government of Punjab. In Haryana, 1452 millers had applied for delivery of CMR, and work has been allotted to 1319 millers by the state government.

On an average, every day, around 4 LMT of paddy is being lifted from mandis in Punjab and 1.5 LMT from mandis in Haryana.To make the procurement of paddy a profitable proposition for farmers, its Minimum Support Price (MSP) has increased from ₹1,310/Quintal in 2013-14 to ₹2,300/Quintal in 2023-24. Since 2018-19, MSP has been assured with a return of at least 50% over all-India weighted average cost of production.

As of 29th October, ₹13,211 crores has been released to over 3.5 lakh farmers in Punjab and ₹10,529 crores to 2.7 lakh farmers in Haryana for KMS 2024-25 under Direct Benefit Transfer (DBT). Budgetary allocation and release for food subsidy has also increased to over 4 times in the last ten years than the preceding ten years. Around ₹21.56 lakh crores have been spent on food subsidy during 2014-15 to 2023-24, compared to around 5.15 lakh crores from 2004-05 to 2013-14.

This article has been republished from The CNBCTV 18