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Rains hit Punjab’s wheat crop but grain piling up at mandis, govt procurement shooting up

Extreme weather & rising prices in private, international markets led to low procurement last year. This season, state has already contributed over 100 LMT of wheat to central reserves.

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Moga: In compounds outside wheat mandis across Punjab, gunny bags full of golden grain are piled up in huge quantities. Less than a month into the procurement season, the state has already contributed more than 100 lakh metric tonnes (LMT) of wheat in 2023-24 to the central government’s reserves. Haryana and Madhya Pradesh are the next big contributors with around 55 LMT and 50 LMT, respectively.

Earlier this year, unseasonal rains before harvesting damaged standing crops in Punjab, bringing back fears of another year of low production from one of the top three wheat-producing states in the country. 

Despite the damage, the state government’s mandi arrival and procurement data starting 1 April suggests that the procurement of wheat this year is rising fast.

As of 29 April, the government had purchased 101 LMT, while the private agencies had bought 4 LMT wheat from Punjab, the data revealed.

The high procurement rate can also be gauged from the fact that last year, the central government’s wheat procurement for the entire season from across the country was at a record low of 188 LMT. The reasons behind the drastic fall were extreme weather conditions and spiralling prices in the private and international markets. 

According to Himanshu, associate professor, centre for economic studies and planning, Jawaharlal Nehru University, wheat procurement by the government was low last year because the market prices were higher than the mandi rates. 

“The private millers bought wheat in bulk at a higher rate than the minimum support price offered by the government because the international prices were really high. Domestic market prices also went high because the Ukraine war was the trigger,” he explained. 

But talking about the current situation, Yugvir Kumar, secretary, market committee, Moga, said things looked better so far. “We were anticipating that because of the rains, the wheat production this time will fall, but, so far, that has not been the case,” he said. 

Yugvir Kumar, secretary, market committee, Moga, at his office | Sonal Matharu | ThePrint
Yugvir Kumar, secretary, market committee, Moga, at his office | Sonal Matharu | ThePrint

Speaking to ThePrint, he explained that there are some areas where the destruction of the crop because of rains was relatively more. “It is there that the production has fallen. Otherwise, overall, the production is expected to be more than last year,” he added.

Meanwhile, comparing the 2023 data with the 2021 figures, agriculture experts are expecting the procurement levels of 433.44 LMT seen in 2021 to be replicated this year as well. 

As on 29 April 2021, 105 LMT of wheat from Punjab had been purchased by the government, while the private agencies had purchased only 0.05 LMT. The current figures are aligned with the 2021 numbers.

“We are expecting that the wheat reaching the mandis this year will be as much as the 2021 figures. But because of the rains, the productivity may be slightly less than in 2020 and 2021,” Amanpreet Singh, district mandi officer, Moga, told ThePrint. 


Also Read: A glut is forcing Punjab farmers to sell capsicum at Rs 2/kg — ‘like giving it away for free’


Better quality, low yield

Last year, the government was caught off-guard in terms of its wheat procurement. One of the reasons was extreme heat that led to low productivity and inferior quality of grain. This year, unseasonal rains ruined the chances of an increased output.

“Last year, because of excessive heat, the production had fallen quite a bit. The grain had become shrivelled. This time, the heat was less, and despite the rain, the grain’s thickness is better than last year. But there is lustre loss because of the rainfall this year, which is affecting the quality a bit,” said Kumar.

In the mandis of Moga, the farmers are also blaming the unpredictable weather patterns for the fluctuating yield of their crops.

Wheat farmers Harjinder Singh and Bahadur Singh ((Left to right) at Moga mandi | Sonal Matharu | ThePrint
Wheat farmers Harjinder Singh and Bahadur Singh (left to right) at Moga mandi | Sonal Matharu | ThePrint

“Last time, the wheat was destroyed because of the heat. This time, the quality is fine but rains happened. The grains were soaked leading to increased weight. We are suffering because before bringing wheat to the markets, they have to dry it,” Ajmer Singh, a farmer from Landeke village, Moga, told ThePrint.

The yield per acre this year is four to five quintals less because of the rains, which will lead to Rs 10,000 loss per acre, said Bahadur Singh, another farmer from Moga.

The destruction of crops due to rainfall, however, is not the same for all farmers, explains Jagmohan Singh, general secretary, Bharatiya Kisan Union.

“The range of destruction is anywhere between 10 and 90 per cent, but most farmers have suffered a 10 per cent loss. Had the rains not happened, they would have seen a 25 per cent jump in the yield this year compared with last year,” Jagmohan told ThePrint.


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Government support

Anticipating lustre loss of grains due to unseasonal rains, the Food Corporation of India (FCI) on 10 April announced marginal value cuts in the minimum support price (MSP). 

These ranged from a cut of Rs 5.31 per quintal on wheat with 6-8 per cent shrivelled grains to Rs 31.87 per quintal on wheat with 16-18 per cent damage.

But to absorb the shock from the farmers, the Punjab government announced that it would pay the margin from its state’s coffers in the second week of April.

“Whatever the FCI had reduced, the Punjab government has announced that the farmers will not pay any value cut — that will be covered by the Punjab government. So, the farmers are not suffering a loss,” said Kumar.

The farmers, therefore, are getting the MSP of Rs 2,125 and are lining up to sell their produce to the government.

Though the mandis in Punjab are buzzing with activity, the farmers are treading cautiously.

“The wheat reaching the markets currently is what could be harvested easily. But in the next 15 days, the crop destroyed by flooding will start to arrive, which may see a drastic drop in quantity and procurement,” said Jagmohan.

(Edited by Richa Mishra)


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