Reasons and impacts of delayed paddy procurement in Punjab

Source: The post reasons and impacts of delayed paddy procurement in Punjab has been created, based on the article “Overflowing Godowns, Unhappy Millers: Why Punjab’s paddy procurement has been delayed” published in “Indian Express” on 25th October 2024

UPSC Syllabus Topic: GS Paper3-issues of buffer stocks and food security

Context: The article discusses delays in paddy procurement in Punjab due to storage issues, low milling yield from hybrid rice, and labor disputes. These issues slow harvesting, affect crop quality, disrupt wheat sowing, and risk causing farmer unrest.

For detailed information on Food Grain Storage Problem in India read this article here

How does paddy procurement work?

1. The Centre, along with state governments and the Food Corporation of India (FCI), plans paddy procurement before each kharif marketing season (October to September).
2. State agencies and FCI buy paddy from farmers at the Minimum Support Price (MSP) for the central pool.
3. This paddy is then milled, and the rice is stored for buffer stock or used in welfare schemes under the National Food Security Act (NFSA).

What is the current situation in Punjab?

1. As of October 23, Punjab has procured only 37.68 lakh tonnes of paddy, compared to 49 lakh tonnes last year.
2. The target for the season is 185 lakh tonnes. The biggest issue is the slow movement of paddy from mandis.
3. Only 10.55% of the paddy (8.7 lakh tonnes) has been moved out, while last year, around 50% had been cleared by this time.

What are the main reasons for the delay?

1. Storage Space Shortage: Private rice millers resist storing government paddy due to limited storage in government godowns. Punjab could move only 7 lakh tonnes of the 124 lakh tonnes stored in godowns, leaving little room for this year’s crop.
2. Hybrid Controversy: Hybrid rice varieties introduced this year have a lower milling out-turn ratio (OTR), yielding only 60%-62% rice from paddy, below the FCI standard of 67%. This leads to a loss of around Rs 300 per quintal for millers.
3. Labor and Arhtiyas’ Demands: Arhtiyas (middlemen) are demanding a higher commission of 2.5%, and mandi laborers are asking for higher wages. Protests from these groups have delayed the procurement process.

What are the impacts of the delay?

1. Slow Harvest: Farmers have only harvested 22% of the paddy crop, compared to 42% last year, due to lack of mandi space. Delayed harvesting can lead to crop quality decline, lower prices, and economic stress.
2. Wheat Sowing Delays: Farmers need to plant wheat in November. Delayed paddy harvest may shorten the gap between crops, increasing stubble burning, which causes air pollution in North India.
3. Potential Unrest: Extended delays can cause unrest among farmers, creating a law and order issue for Punjab.

What are possible solutions?

1. Temporary Storage: The government could use Punjab’s 5,000 rice mills as temporary storage but needs to resolve millers’ concerns first.
2. Better Coordination: Improved coordination between procurement, transport, and storage facilities, timely payments to arhtiyas, and meeting labor demands could help.
3. Long-Term Diversification: Punjab should diversify its crops to prevent future storage and surplus issues.

Question for practice:

Examine the main reasons for the delays in paddy procurement in Punjab and their impacts on farmers and the agricultural cycle.