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Making of a mega paddy procurement crisis

18 November 2024

Due to late commencement of milling, there is not enough room in government warehouses in Punjab to house the fresh crop as the national granary is already loaded with the last season’s produce

CHANDIGARH: Punjab is on the crest of a paddy procurement crisis — on a scale not witnessed in at least the last two decades. Consider this: 124 lakh metric tonnes (LMT) of milled rice is expected to arrive in government godowns from the latest Kharif crop whose procurement began on October 1, but the space available to store them at present is just 25 LMT.

Before every harvest, the procurer has to create adequate room for the safe storage of fresh arrivals by shifting the existing stock in warehouses elsewhere. For example, last year’s paddy ought to have left the warehouses in the state by June 30. That used to happen like clockwork year after year, but inexplicably didn't this time around.

As of now, Punjab holds a whopping 114 lakh tonnes of rice in its godowns. Chief Minister Bhagwant Mann recently attributed the delay in evacuation of old stock to late milling during the last marketing season. His finance minister Harpal Singh Cheema sought to score political points by blaming it on the Centre's “step motherly” attitude to Punjab and tardy procurement. The decibel level of political mudslinging between the AAP-led state government and the BJP defending the Centre is growing.

Why was milling of the last marketing season’s produce delayed? It was because the standard operating procedure (SOP) for delivering fortified rice to FCI godowns was firmed up by the Centre only by December last year. The SOPs included multiple quality parameters and checks. Tenders were then floated and paddy milling started in January this year. By May, the godown space crunch reared its head, so the pace of milling slowed down. Rice milling of last season's stock was finally wrapped up only in September.

While rice millers, commission agents and farmers are blaming both the state and Central governments for the complete mismanagement, the Centre claims it has already provided a month-wise plan allocating maximum rail rakes to Punjab for expedited evacuation of the existing fortified rice stock.

Prominent agriculture expert and former Punjab Agriculture University Vice-Chancellor Sardara Singh Johl held the Central government squarely responsible for the ongoing crisis. “FCI is a Central agency. It should have lifted the stocks in a time bound manner to make space for the fresh arrivals. There can be no excuse for this delay. The state government cannot be blamed; it is just an agent of the Centre for the procurement.’’

In the eye of a storm

Then there is the issue of PR-126 — a hitherto popular short-duration paddy variety promoted by the Punjab government as it consumes less water — and the cultivation of other hybrids. Millers now allege that they yield a lesser volume of rice — out-turn ratio in scientific parlance — after milling as compared to other varieties. The Food Corporation of India (FCI) mandates that 100 quintals of paddy must produce 67 quintals of rice after milling. But PR-126's rice output has come down to 60-62 quintals, the millers allege, adding that the lower yield translates into an estimated loss of Rs 300 per quintal. While millers are wary of lifting PR-126, the question of yield could possibly be tied to the hybrids that are fraudulently sold as advanced versions of PR-126 to unsuspecting farmers. (See box)

The other knotty issues in the procurement conundrum relate to labour and commission arrangements. Labourers at the mandis (markets) are demanding higher wages on par with their counterparts in Haryana, while agents are insisting on a 2.5% commission, instead of the usual Rs 46 per quintal.

For the Kharif marketing season 2024-25, the Centre set a target of 124 LMT rice from the state, for which Punjab is expected to procure close to 185 LMT paddy by November 30. For the uninitiated, white rice is milled rice that has had its husk, bran and germ removed. Till November 16, 158 LMT paddy had arrived at the mandis, 153 LMT was procured by the state and 128 LMT lifted.

Payment to farmers

As for payment, it is seamlessly made to the farmers through direct bank transfer within 48 hours of procurement, the Union food ministry said on October 30. "The entire procurement operations have been digitized to improve efficiency, transparency and accountability which reflects the commitment of the Union government to further strengthen the MSP (minimum support price) regime," it added.

However, farmer unions have a different take. They claim there are many farmers who sold their produce below MSP. There are others who fear that a delay in procurement could have a cascading effect on thor wheat sowing for the Rabi season, which normally begins in mid-November. Added to that are concerns over availability of fertilizers, particularly di-ammonium phosphate (DAP), accentuating farmer anxiety that is manifesting in various ways.

One such stressed out farmer, Jaswinder Singh, allegedly died by suicide in Patiala district after financial pressure from unsold paddy and a debt of approximately Rs 5 lakh, his son claimed. Another group of farmers protesting over moisture content in paddy during its auction at the Raike Kalan grain market near Bathinda allegedly held two food inspectors captive — a woman and a naib tehsildar (revenue official) — and later clashed with the police. Six persons, including three personnel, were injured and two police vehicles were damaged in the clash. The Punjab Police booked 11 activists of the Bhartiya Kisan Union (Ekta-Ugrahan) for holding three government officials hostage and attacking a police team.

The controversy over procurement also figured in the Punjab and Haryana High Court with a division bench hoping the Centre and the state would be able to thrash it out in time.

Source : newindianexpress

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