Punjab: Storage shortage persists as wheat harvest approaches

Like previous year, shortage of storage space for food grains in Punjab remains a concern. Since August 2025, the Food Corporation of India (FCI) has moved five LMT each of wheat and rice every month. However, to ensure there is enough room for the 2026-27 wheat crop, the monthly movement of wheat must increase to at least 15 LMT.

The rice industry is also grappling with inadequate warehousing capacity. Punjab is required to supply 102 LMT of rice from the current season’s production to the central pool. Out of this, nearly 40 LMT has been delivered so far, while around 62 LMT of rice remains pending in the form of paddy and rice stocked in mills, awaiting delivery to FCI godowns.

According to the rice millers, presently around 140 LMT of rice is already lying fully stocked in various depots across Punjab, leaving little to no additional storage space.

At a meeting of the group of ministers formed to oversee the procurement exercise, it was pointed out that there is a need for the FCI to step up movement of wheat from the state, from the monthly 5 LMT each of wheat and rice to a minimum of 15 LMT of wheat per month. The wheat harvest in the state typically begins in late March to early April, and the state govt plans to officially start procurement from April 1, with a target to procure 132 LMT of wheat.

“Procurement of the wheat crop is set to begin in about 30 days. Since a bumper wheat crop is expected, there is no clarity on where it will be stored. So far, no additional storage arrangements have been made by the Centre for ending rice stocks lying with the millers. In March alone, movement was restricted to nearly four LMT. At this pace, it would take nearly 12 months to clear the pending rice stocks,” said a rice miller from Ferozepur.

As per the state’s custom milling policy, 100% delivery of rice is to be completed by March 31. However, at the current rate of lifting, only around 50% delivery will be possible by then, with no clarity on when the remaining 50% will be procured. “Continued slow movement during the onset of summer may deteriorate paddy quality, increasing the percentage of broken rice. With the arrival of the monsoon in June, the risk of damage and discolouration will further rise, leading to heavy financial losses for the millers. Last year, milling operations extended until Sept 15, resulting in significant economic losses to the industry,” the miller added.

While the state govt has been taking up the matter with the Union food and public distribution ministry, the rice millers, too, demanded that movement of rice from the state should be increased to at least 20 LMT. This would help create adequate storage space in the state and ensure that the pending rice stocks are delivered to the Central pool before the onset of the monsoon season.

This article has been republished from The Times of India.