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Hindustan Times
13-05-2025
- Business
- Hindustan Times
Pvt sector purchases surge as wheat procurement nears end in Punjab
The wheat procurement season for the current rabi season in Punjab is nearing its end, with a record-breaking surge in private sector purchases. Toll now, a total of 128.25 lakh tonnes of wheat have arrived in state mandis, with government agencies purchasing 117.25 lakh tonnes. The remaining 11 lakh tonnes were bought by private traders, marking the highest level of private sector involvement since records began in the 1980s. While the state government remains behind its procurement target of 124 lakh tonnes set by the Centre, the rise in private purchases has been seen as a positive development. The price paid by private traders has been above the Minimum Support Price (MSP) of ₹2,425 per quintal, with some areas like Sangrur and Patiala witnessing prices of up to ₹2,640 per quintal — ₹200 higher than the MSP, said official familiar with the matter. This development has been hailed by officials as a sign that the state's wheat market is becoming less reliant on government procurement. 'The fact that the private sector is willing to pay more for wheat is a good sign,' said a senior official from the Punjab State Agricultural Marketing Board (Mandi Board). 'It shows that farmers have more options and are not entirely dependent on government purchases,' he added According to the Mandi Board, about 50,000 to 1 lakh tonnes of wheat are expected to arrive in the mandis before the procurement process concludes on May 15. The state government had originally anticipated wheat arrivals to reach 132 lakh tonnes, but the figures have fallen short due to various factors. Factors behind increased private sector purchases The surge in private sector activity is being attributed to several factors, including the expansion of flour mills along the Delhi-Katra highway. With over 50 new mills in the region, the proximity to markets in New Delhi and neighboring states has made it easier for millers to procure wheat directly from the mandis. Naresh Ghai, president of the Wheat Flour Millers' Association of Punjab, pointed out that the panic buying observed this year is largely due to last season's delayed wheat quota releases, which disrupted the operations of flour mills. 'Farmers are not taking any chances this time. They are ensuring they have enough stocks to meet their needs for the next 6 to 9 months,' said Ghai. Despite falling short of the target, Punjab food and civil supplies minister Lal Chand Kataruchak expressed satisfaction with the procurement process. 'Though we have not met the Centre's target, the overall procurement process has been smooth, and it is good for farmers that they are receiving a price higher than the MSP,' Kataruchak said. Farmers' organisations have also welcomed the increased private sector involvement. Joginder Singh Ughrahan, president of the Bharatiya Kisan Union (Ekta-Ughrahan), hailed the trend of institutional purchases through government mandis. He said this ensures farmers do not feel exploited as long as traders pay a fair price. 'We are not seeking a huge hike in the MSP, but we do want reasonable adjustments and better control over the costs of agricultural inputs like diesel, agro-chemicals, and pesticides,' he added.
Hindustan Times
29-04-2025
- Business
- Hindustan Times
Release market fee accrual, RDF: Punjab to Centre
The Punjab government has once again raised the issue of pending market fee accrual and rural development fund (RDF) with the Centre. In a letter to Union agriculture minister Shivraj Singh Chouhan sent last week, state food and civil supplies minister Lal Chand Kataruchak said that repeated reminders have been sent for the past three years and seven procurement seasons rabi (wheat) and kharif (paddy) but market fee funds are being sent at 2% rate. The state has been seeking a market fee at 3% and according to data, an amount of ₹1,100 crore is pending market with the Centre. The pendency is since 2021, which means four paddy procurement seasons (2021, 2022, 2023 and 2024) including three wheat procurements and three wheat procurement seasons (2022, 2023 and 2024). In case the Centre pays the state at the same rate during the current wheat procurement, the pendency will increase to nearly ₹1,400 crore. In case pending RDF are also included the pending sum increases to ₹8,250 crore. 'These funds are the state's right and lifeline, and they will be beneficial for the state in giving a push to the development,' Kataruchak said, hoping that during the current wheat procurement, which is underway, the Centre will resume release of 3% market fee. If the Union government releases a market fee at 3%, the state government is slated to get ₹867 crore, and at 2% the amount will be ₹578 crore, a state agricultural marketing board official said, pleading anonymity. 'We are in constant talks with the Centre and pursuing the release of market fee as fixed by the state government as accrual of taxes on food grain procurement is prerogative of the state. Farmers grow food grains for the central pool and state agencies and the Food Corporation of India procures the grain,' the officer with the Mandi Board added. Pending RDF A sum of ₹6,857 crore is also pending against the rural development fund (RDF), which the Centre has stopped since the paddy procurement of 2021. As per figures from the Mandi Board, since the four seasons of paddy (2021, 2022, 2023 and 2024), ₹1,110, ₹1,112, ₹1,170 and ₹1,200 are pending. For wheat procurement (2022, 2023, and 2024) ₹650 crore, ₹765 crore, and ₹850 crore is pending. The state government has moved the Supreme Court seeking directions for the Centre to release RDF. The case is coming up for hearing on April 30 and the state government is hopeful of an early fruitful decision. It needs to be mentioned that in 2021, when the RDF release was stopped, the Centre conveyed to the state government that the funds were being used on works other than maintenance of mandis and rural roads which supports the procurement. The state government was conveyed to amend the Punjab Rural Development Act of 1987, which gives provisions for the imposition of a 3% tax by the state on food grain procurement in the form of RDF. The Aam Aadmi Party (AAP) government, on assuming power in the state in 2022, had amended the Act. The Centre had informed the state that it would pay taxes lump-sum 2% on each procurement (rabi and kharif) on a par with other states, to which the Punjab government has objected.
Hindustan Times
24-04-2025
- Business
- Hindustan Times
Punjab: Unavailability of gravel a roadblock to rural roads' project, say contractors
The non-availability of gravel is proving to be an impediment to the construction of rural roads, contractors highlighted during an open forum organised by Punjab state agricultural marketing board (Mandi Board) here on Wednesday. As part of the Badalda Punjab Budget, the state government has allocated ₹3,500 crores for strengthening 1,900 kilometres of rural roads. The contractors had been invited for discussions after they cried foul over the state government's decision of fixing contractors' responsibility to maintain roads for five years. Punjab chief minister Bhagwant Mann and cabinet ministers Gurmeet Singh Khudian and Harbhajan Singh ETO were also present at the forum. Contractor Kulwinder Singh Sembhy from Kapurthala said that 95% of stone crushers in the state have been shut due to which they are forced to bring gravel from Himachal at double the cost -- ₹35 per cubic feet. He further said that the road specifications set by the state government do not meet the current demands. 'Roads in rural belts are still being constructed as per the requirements 30 years ago when fewer heavy vehicles used to run on these roads. The road specifications need to be reviewed to accommodate present conditions and traffic,' said Sembhy. 'Thirty years ago, bullock carts were used for transportation. Trucks and tractor-trailers now carry weight up to 500 quintals. Such heavy vehicles damage the roads more. Make available material and give us the best specifications, and the roads will last longer than five years,' said another contractor. A third contractor pointed out that rural roads constructed under Pradhan Mantri Grameen Sadak Yojana cost ₹80 lakh to ₹1 crore per kilometres whereas the ones built as per Mandi Board specifications cost ₹15 lakh per kilometre. 'The cost of construction makes the difference,' he said. After listening to the contractors' grievances, the CM asked the engineers of Mandi Board and public works department to review the specifications to construct roads that can sustain heavier traffic. This, even as the board has already floated tenders for road construction in four districts -- Barnala, Pathankot, Nawanshahr and Faridkot as part of the pilot project. Engineer-in-chief Jatinder Singh Bhangu said, 'As per the CM's directions, we will re-work the specifications and the tenders will then be invited again.' He added that as per the tentative schedule, the project will be completed by June 2026. Sources, however, said the review of specifications may delay the project. Out of the total project cost, ₹2,867 crore has been reserved for road construction and the rest for maintenance, he added. The official further informed that ₹2,000 crore has been raised from loan from the National Bank for Agricultural and Rural Development (NABARD) and rest ₹1,500 crore from other sources. CM hopes release of RDF The CM said the state government is in talks with the Centre for the release of ₹6,000 crore as rural development funds (RDF) on past procurements of food grains from Punjab. 'We have amended our laws governing usage of the funds as mandated by the Centre and now they have asked us to lower the tax accruals by the state. We are hopeful of a headway,' he added. The repair and construction of rural roads have been delayed due to lack of funds, forcing the Mandi Board to take loans.
Time of India
23-04-2025
- Business
- Time of India
Punjab to upgrade 18,944 km of link roads: CM Bhagwant Mann
Chandigarh: Punjab chief minister Bhagwant Mann on Wednesday launched a "first-of-its-kind" initiative for the repair and upgrade of 18,944 km of link roads at a cost of Rs 3,459.95 crore. Alleging past corruption in road construction, he asserted that there will now be no compromise on quality. Speaking at an interactive session, 'Sadak Dhaancha Vikas Milni', at Tagore Theatre, Mann said such a function was organised for the first time to ensure quality construction of roads. "The motive of the campaign is to facilitate the people as these link roads act as a catalyst in commuting and smooth transportation of goods and services to people," he said. He said the total link road network in the state extends to 64,878 km, and high-quality repair will be undertaken wherever required. "The link roads are the arteries of economic growth in the state. Construction work will be taken up on priority as most of these stretches have remained unattended even after passing their life of six years. The company constructing the road will be responsible for the maintenance of these roads for five years," he said. Taking a jibe at the rampant corruption prevalent earlier in the construction of roads, Mann said: "Earlier, there was a share of those in higher and lower echelons of power in the tenders for the construction of roads. In such a situation, the contractors had to compromise on the quality of roads. But now, corrupt practices have come to an end, so the contractors must focus on the quality of roads to be constructed," he said. Mann announced that a coordination committee will be constituted among the Mandi Board, PWD, and contractors to resolve all the issues in the construction of roads. He added that if any officer indulges in corrupt activity, then strict action will be taken against them. The panchayats will be asked to ensure the proper width of the roads to facilitate the construction of these roads, he said. The CM said for the first time in the history of the state, his govt has introduced artificial intelligence (AI) in the working of the state govt. He added that due to its usage, the govt has saved Rs 226.89 crore merely in estimates of roads, as 540 km of roads that existed only on paper have been detected. He said the work of laying the sewerage system and wires should be completed well before constructing the roads. Mann said that to ensure a proper quality check over the construction of roads, a third party techno financial audit will be conducted. He added the state govt has enhanced the width of 78 link roads used for mining from 10 feet to 18 feet, and Rs 266.27 crore will be spent on the construction and widening of these 389.17 km of roads. MSID:: 120555094 413 | Chandigarh: Punjab chief minister Bhagwant Mann on Wednesday launched a "first-of-its-kind" initiative for the repair and upgrade of 18,944 km of link roads at a cost of Rs 3,459.95 crore. Alleging past corruption in road construction, he asserted that there will now be no compromise on quality. Speaking at an interactive session, 'Sadak Dhaancha Vikas Milni', at Tagore Theatre, Mann said such a function was organised for the first time to ensure quality construction of roads. "The motive of the campaign is to facilitate the people as these link roads act as a catalyst in commuting and smooth transportation of goods and services to people," he said. He said the total link road network in the state extends to 64,878 km, and high-quality repair will be undertaken wherever required. "The link roads are the arteries of economic growth in the state. Construction work will be taken up on priority as most of these stretches have remained unattended even after passing their life of six years. The company constructing the road will be responsible for the maintenance of these roads for five years," he said. Taking a jibe at the rampant corruption prevalent earlier in the construction of roads, Mann said: "Earlier, there was a share of those in higher and lower echelons of power in the tenders for the construction of roads. In such a situation, the contractors had to compromise on the quality of roads. But now, corrupt practices have come to an end, so the contractors must focus on the quality of roads to be constructed," he said. Mann announced that a coordination committee will be constituted among the Mandi Board, PWD, and contractors to resolve all the issues in the construction of roads. He added that if any officer indulges in corrupt activity, then strict action will be taken against them. The panchayats will be asked to ensure the proper width of the roads to facilitate the construction of these roads, he said. The CM said for the first time in the history of the state, his govt has introduced artificial intelligence (AI) in the working of the state govt. He added that due to its usage, the govt has saved Rs 226.89 crore merely in estimates of roads, as 540 km of roads that existed only on paper have been detected. He said the work of laying the sewerage system and wires should be completed well before constructing the roads. Mann said that to ensure a proper quality check over the construction of roads, a third party techno financial audit will be conducted. He added the state govt has enhanced the width of 78 link roads used for mining from 10 feet to 18 feet, and Rs 266.27 crore will be spent on the construction and widening of these 389.17 km of roads. MSID:: 120555094 413 |
