Punjab Cabinet Reviews Paddy Procurement Arrangements

The Punjab Cabinet reviewed the arrangements and preparedness for the Paddy procurement season beginning from October 1, with Chief Minister Captain Amarinder Singh issuing directives for smooth and hassle-free procurement of the grain.

Facts :

• The elaborate arrangements were being made to procure the expected 200 LMT(Lakh Metric Ton) Paddy for this year.
• The Punjab cabinet was informed that the Government of India had fixed Minimum Support Price Rs. 1770 per quintal for grade 'A' paddy and Rs. 1750 per quintal for common variety Paddy for the Kharif marketing season(KMS) 2018-19.
• Five State procurement agencies, viz Pungrain, Markfed, Punsup, PSWC, PAFC, along with FCI, will procure paddy on Minimum Support Price as per specification laid down by the Government of India.
• During the previous KMS 2017-18, a total of 179.34 LMT paddy was procured, of which 176.61 LMT paddy was procured by Government agencies, while traders/millers procured only 2.73 LMT.
• During ensuing KMS 2018-19, State Agencies will procure 190.00 LMT paddy and FCI will procure 10 LMT paddy.
• The Cabinet was informed that for the procurement of 190 LMT paddy, Cash Credit Limit amounting to Rs. 40300 crore was required by State Procuring Agencies. The same will be arranged before the commencement of the season.
• The Punjab Mandi Board has notified 1834 Purchase Centers and allotment of Purchase Centers amongst the procuring agencies would be done before the commencement of KMS 2018-19.
• FCI makes its own arrangements of gunny bales, cash credit, stock articles and storage space.
• Referring to the Paddy Purchase Policy for KMS 2018-19, Food, Civil Supplies & Consumer Affairs Department had already issued ‘The Punjab Custom Milling of Paddy Policy (Kharif 2018-19)’ for paddy processing, after approval of the Council of Ministers.
• Moreover necessary arrangements of required covers (Tarpaulin) for storage of paddy would be done in a timely manner.

Analysis :

• The Chief Minister has asked the Food and Civil Supplies Department, the nodal agency for the procurement operations, to ensure all necessary arrangements for smooth, prompt and hassle-free procurement and storage of paddy.
• CM also reiterated his Government’s firm commitment to lift every single grain of the farmers produce from the market and strictly adhere to the prescribed norms of timely payment.
• For ensuring hassle free procurement and resolving the grievances of farmers on the spot, the concerned Deputy Commissioners has made different committes to resolve farmers conflicts.
• The committee will consist of members of procuring agencies, Mandi Board, Arhtyias, Rice Mill Owners and representatives of farmers.

Allotment share of Paddy to be procured by different agencies (2018-19) :

1.Pungrain – 30% (60 LMT)
2.Markfed – 23% (46 LMT)
3.Punsup – 22% (44 LMT)
4.Warehouse – 10% (20 LMT)
5.Punjab Agro – 10% (20 LMT)
6.F.C.I -5 % ( 10 LMT)
Total – 100 % (200 LMT)

By: Harman Sandhu