Highest ever private procurement of wheat in Punjab this year at 10.79 LMT

By Harpreet Bajwa

Private traders have bought 10.79 lakh metric tonnes of wheat this rabi season in Punjab, the highest ever purchase by the private sector, paying about Rs 200 more than the Minimum Support Price (MSP) to farmers. The highest purchase by private players was from Sangrur, home district of chief minister Bhagwant Mann.

As per official data with the state food and supplies department, a total of 130.5 lakh tonnes of wheat have been procured across the state till May 15, the last day of procurement; government agencies purchased 119.2 lakh tonnes and the remaining 10.79 lakh tonnes were bought by private players.

2.43 lakh tonnes was purchased from Sangrur, home district of chief minister Bhagwant Mann, followed by 1.32 lakh tonnes from Faridkot, 1.01 lakh tonnes from Ludhiana (East), 70,704 tonnes from Patiala and 68,020 tonnes from Bathinda.

The rise in private purchases has been seen as a positive development as the Minimum Support Price (MSP) of wheat has risen from Rs 2,425 per quintal to Rs 2,640 per quintal in a few areas of Sangrur and Patiala.

An officer, on condition of anonymity, said private traders procured 7.5 LMT last year and it was 6.5 LMT in 2022-23.

A total of 119.2 lakh tonnes has been procured by government agencies as per data with the department. The highest purchase was from Muktsar at 8.77 LMT, followed by Patiala with 8.50 LMT, Bathinda with 8.42 LMT, Ferozepur district with 8.38 LMT, and Tarn Taran with 7.56 LMT. But interestingly, the state government remains behind its procurement target of 124 lakh tonnes set by the Union Government.

A senior official of the state food and supplies department, on condition of anonymity, said that the fact that private players are procuring and paying more for wheat is a positive step and this shows that farmers are now not entirely dependent on government purchase.

Talking to TNIE, Naresh Ghai, president of the Wheat Flour Millers’ Association of Punjab said that millers faced problems trying to source wheat last year at the rates had peaked at Rs 3,200 per quintal as the Centre declared release of wheat under Open Market Sale Scheme (OMSS) in July but the wheat was released in December, disrupting operation of flour mills.

“It became very difficult to buy wheat from open market for those few months. This year, millers are apprehensive that the government may also delay the release of wheat under OMSS, thus in anticipation and fear, they procured their wheat stocks for six to nine months from the farmers directly. Also, production is more this season than last season and farmers have kept wheat to sell later,” he said.

Punjab Food, Civil Supplies and Consumer Affairs Minister Lal Chand Kataruchak said the state government has procured the entire 130.03 LMT of wheat arriving in the mandis till the closure of the procurement season on May 15 and added that the payments to the tune of Rs 28,571 crore have been credited into the accounts of over 7 Lakh farmers. With regards to lifting, he mentioned that 104.51 LMT has been lifted, and the remaining would also be lifted within a few days.

This article has been republished from The New Indian Express.