Paddy procurement has begun in Punjab and Haryana with the centre agreeing to their request to advance procurement following reports of distress sale at rates below the minimum support price in some markets in the two agrarian states.
On the first day, government agencies in Punjab purchased 7,441 tonne of paddy while traders purchased 2,225 tonne with many farmers forced to sell at s lower price due to high moisture content. In Haryana too, paddy procurement has begun, though figures of first day arrivals and procurement were not available.
DS Grewal, director, food and civil supplies, Punjab, informed FE the highest purchase was reported in Muktsar where 5,449 tonne were procured, followed by Faridkot where 2,477 tonne of paddy was purchased on Tuesday.
The paddy arrivals were expected to increase in two days. Most districts recorded marginal procurement on Tuesday. Tarn Taran recorded 175 tonne, followed by Gurdaspur with 100 tonne, Amritsar 96 tonne, Ropar 98 tonne and Moga 58 tonne. The Food Corporation of India (FCI) also made a beginning by purchasing 17 tonne, Grewal added.
Food Corporation of India general manager Dev Raj told FE here on Tuesday that the centre had advanced the date of procurement of paddy in these states to help garner maximum produce under the central pool and build up buffer stock in the light of drought-like conditions. With this, state agencies of Punjab and Haryana and the Food Corporation of India have geared up to purchase paddy in the two states. The FCI has been assigned a target of 20% paddy procurement.
Amid the talk of drought-like conditions in many parts of the country, Punjab and Haryana are targeting record paddy procurement this season. Punjab alone would procure 140 lakh tonne of paddy for the central pool during the current season. Last year, about 132.17 lakh tonne of paddy was procured from Punjab. Neighbouring Haryana would contribute another 22 lakh tonne to the central pool in 2009-10.
Together, Punjab and Haryana are targeting 162.00 lakh tonne of paddy for the central pool in the 2009-10 season. In 2008-09, the total paddy procurement for the central pool from Punjab and Haryana was about 153.00 lakh tonne.
Grewal said that Punjab has established 1,555 procurement centres across grain markets for paddy lifting. Haryana has set up 181 lifting centres, according to official sources.
In 2008, procurement agencies made payments of over Rs 10,000 crore to farmers in just over two months of paddy procurement. In current season too, the procurement agencies would be making a payment of more than Rs 10,500 crore in view of arrival of some early verities of paddy in the markets.
Punjab and Haryana have total covered storage capacity of 87 lakh tonne and 41.62 lakh tonne for the central as well for their own schemes. Given that, the two states would have to seek help from the Railways for ?Paddy Specials? to lift paddy from the market, said officials.
Capt GS Virk, former director, Seed Certification, Haryana, told FE that while the area under paddy this year would be slightly less than that last year, production would be more and so would be the contribution of Punjab and Haryana to the central pool.