Record paddy procurement in Punjab! 85 lakh tonnes and counting as Centre ramps up efforts
In the ongoing 2024-25 Kharif marketing season, Punjab has procured an impressive 85.41 lakh tonnes (LT) of paddy, valued at around Rs 19,800 crore, according to a statement by the Ministry of Food on Sunday. With procurement operations now fully active, this season’s efforts have brought payments to nearly 4 lakh farmers, signifying substantial progress despite early setbacks due to unseasonal rainfall.
Centre Steps Up with Full-Swing Operations
The paddy procurement drive, which officially commenced on October 1, was initially hampered by heavy rains in September, leading to the high moisture content in the crop and delaying the usual start. However, with improved weather conditions, the operations have picked up, and the Ministry of Food has confirmed that procurement activities are proceeding at a rapid pace.
According to the ministry, a total of 90.69 LT of paddy has arrived at mandis across Punjab as of November 2, with 85.41 LT already procured by the Food Corporation of India (FCI) and various state agencies. The Central Government has set a procurement target of 185 LT for Punjab this season, indicating that more than 45 per cent of the target has already been achieved. Paddy is being purchased at the government-set Minimum Support Price (MSP) of Rs 2,320 per quintal for ‘Grade A’ paddy.
To manage the influx and ensure an organised procurement process, Punjab’s state government has designated 2,927 mandis and temporary procurement yards throughout the region. This extensive setup is aimed at reducing bottlenecks and providing a seamless experience for farmers bringing in their produce. The involvement of nearly 4,640 rice millers, who have applied for paddy shelling operations, further supports the process. So far, the state government has allocated shelling work to 4,132 millers to expedite the post-harvest processing and avoid potential delays.
What This Means for Farmers
The state government and FCI are leading the procurement drive, operating under the MSP framework. This initiative is part of a broader government strategy to support farmers financially by ensuring that they receive fair prices for their crops and are protected from potential losses in the open market. The payment system, which has already disbursed Rs 19,800 crore, is designed to transfer funds directly to farmers on time, enhancing liquidity for rural communities and helping farmers meet their immediate financial needs.
Agricultural procurement in Punjab is critical not only for the state’s economy but also for India’s food security. Punjab is one of the country’s largest rice producers, and government procurement at MSP levels is essential to stabilise prices, particularly for staple crops like rice and wheat. The smooth functioning of the procurement process also underscores the importance of government intervention in agricultural markets, especially during the Kharif season, when crop prices can fluctuate due to weather conditions and yield variations.
Despite the slow start, the Food Ministry is optimistic about achieving the season’s procurement target, especially given the current pace of operations. The scale of procurement in Punjab serves as an example of the effectiveness of government intervention to support farmers and stabilise the agriculture sector. As the Kharif season progresses, the government will continue to monitor and facilitate the procurement process, ensuring that farmers receive timely payments and that paddy procurement targets are met efficiently.
This season’s procurement efforts not only reflect the resilience of Punjab’s agricultural sector but also showcase the robust systems in place to safeguard farmers’ interests, reinforcing the importance of a stable and supportive framework for India’s agrarian economy.
This article has been republished from The Financial Express