Reliable sources said the state has a capacity of 72 lakh tonnes for storage of grain. The stores are already occupied with about 38 lakh tonnes of rice, 18 lakh tonnes of wheat and 8 lakh tonnes of paddy, leaving little space for fresh arrivals.Both Punjab and Haryana have geared up for the procurement of bumper paddy crop. According to information, Haryana has set up 194 purchasing centres to ensure that no farmer has to travel more than 10 kms to carry and sell his produce in any mandi in the state. To prevent distress sale of paddy, the Haryana government has alerted six procurement agencies -- Food Corporation of India, HAFED, Haryana Warehousing Corporation, Agro Industries Corporation, CONFED and food and supplies department -- to make arrangements for procurement.During last year's kharif season, the state food and supplies department, along with other procuring agencies and millers, purchased the entire paddy stocks of 98.39 lakh tonnes.

However, due to delayed allowance to FCI,the entire paddy could not be milled.The union government has permitted the validity of relaxation upto October 31, 1998 and FCI has delivered 11.32 lakh tonnes of rice as against total due of 14.34 lakh tonnes. The minister said the percentage of delivery pertaining to the state procurement agencies was 90 per cent as against 74 per cent in case of FCI.Punjab is expecting that this year the crop of paddy and production would exceed 1.20 crore tonnes. Of this the likely marketable surplus would be around 1.8 crore tonnes representing about 30 per cent increase in the produce over the previous year production of 98.39 lakh tonnes.