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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.
Indian Express
01-05-2025
- Business
- Indian Express
Punjab's private wheat procurement soars, closes in on 2006 record
Private wheat procurement in Punjab is experiencing a significant surge this year, reaching the highest levels since 2006. The figures are quickly approaching the record numbers set in 2006, the year with the highest private wheat procurement by traders in the state over the past two decades. According to official Punjab Mandi Board data, private traders have procured 9.28 lakh tonnes (lt) of wheat in Punjab as of Wednesday. The only higher private procurement occurred in 2006, when private traders purchased 13.12 lakh tonnes, according to records from the Food Corporation of India (FCI). The year 2007 saw private procurement of 9.18 lakh tonnes. If the trend continues, this season could match or surpass the 2006 record for private procurement, marking a significant shift in Punjab's procurement dynamics. 'We expect that it will reach the 2006 record by the end of the season,' said a senior official familiar with the procurement trends. The wheat procured by private traders forms a substantial share of the 114.16 lt purchased in the ongoing procurement season. The total wheat arrival in the state's mandis stands at 115.57 lt, which means private players account for over 8 per cent of the total purchase—a notable development, given the usual dominance of government procurement agencies in the state. Procurement of wheat is still ongoing in the state, and it will take at least two more weeks to complete. A bumper crop is expected this year in Punjab, as weather conditions remained favourable throughout the wheat-growing season. Private procurement in recent years has been significantly lower: in 2024, it was 7.55 lt; in 2023, it was 4.69 lt; in 2022, it was 6.33 lt; in 2021, it was only 1.14 lt; in 2020, it was 1.93 lt; in 2019, it was 2.80 lt; and in 2018, it was 2.06 lt. There are approximately 70-75 roller flour mills in Punjab, with a daily processing capacity of 7,400 tonnes of wheat, although they typically operate at around 50 per cent capacity. This translates to an annual processing capacity of approximately 15 lt. Millers primarily focus on supplying atta, sooji, and maida within Punjab and to other states. According to the Punjab Market Board (PMB), Punjab millers earlier procured only 25-30% of wheat from within the state. The remaining 70–75 per cent was procured from the FCI's e-auctions under the Open Market Sale Scheme (OMSS) and from other states, such as Uttar Pradesh and Rajasthan, which often supplied wheat at lower prices than the FCI. However, this year, millers have already purchased over 60 per cent of their total wheat requirement from within Punjab. Several factors have contributed to this surge, Naresh Ghai, president of the Punjab Roller Flour Mills Association, told The Indian Express. 'Last year, rates were high—even the FCI under OMSS had opened the tender at Rs 3,100 per quintal, while the MSP was Rs 2,325 per quintal then,' said Ghai, adding that this year, millers preferred to purchase wheat at the MSP of Rs 2,425 per quintal instead because they are apprehensive of higher rate under OMSS. He added that millers are expected to purchase 2–3 lakh tonnes more in the coming days. The remaining 3 lakh tonnes will likely be procured directly from farmers, as many have stored a portion of their produce to sell later to private traders. Some quantity will also be bought under OMSS or sourced from other states.
