Executive Summary:
This document presents the Ministry of Consumer Affairs, Food and Public Distribution's response to questions regarding wheat and paddy procurement from Punjab during the 2024-25 season. It addresses concerns about delays, reduced procurement, availability of gunny bags, revised norms, and potential financial losses to farmers. The response provides data on procurement dates and quantities and outlines measures to ensure timely procurement and payments.
Key Points / Main Content:
Procurement Dates and Quantities:
* There were no delays in wheat and paddy procurement in Punjab during the 2024-25 season. Procurement dates were fixed in consultation with the State Government.
* The commencement dates for wheat and paddy procurement in Punjab for the marketing seasons 2022-23 to 2024-25 are provided.
* The quantities of wheat and paddy procured in Punjab for the central pool during the marketing seasons 2022-23 to 2024-25 are detailed.
* Procurement quantity depends on estimated production, marketable surplus, and agricultural crop pattern.
Storage and Gunny Bags:
* Creating and vacating storage space is an ongoing process.
* Measures were taken to increase storage capacity for rice, including prioritizing wheat movement, hiring additional storage, and increasing rice outflow from Punjab.
* Sufficient gunny bags were available to procuring agencies before procurement began.
Measures for Timely Procurement and Payment:
* FCI and State Agencies undertake procurement under MSP operations.
* State Government Agencies procure coarse grains/millets under the decentralized procurement system.
* FCI and State Agencies establish purchase centers based on State Government decisions to maximize MSP operations.
* Stocks conforming to Government of India specifications are procured at MSP; farmers are free to sell in the open market if they receive better prices.
* Procurement is carried out through State Procurement Portals for transparency, including farmer registration, land/crop verification, and online MSP payments.
* "One Nation, One MSP" through DBT has been implemented nationwide since RMS 2021-22, ensuring direct payment of MSP to farmers' accounts.
* Cooperative societies, SHGs, Panchayats, PACS, and FPOs can be engaged by State procuring agencies to widen the reach of MSP operations.
Impact Analysis:
Farmers:
Impact: Ensures income stability through MSP, prevents distress sales, and promotes investment in agriculture. Direct Benefit Transfer (DBT) ensures timely and transparent payments.
Action Required: Register on State Procurement Portals, offer stocks conforming to specifications at purchase centers, and ensure bank accounts are linked for DBT.
State Government:
Impact: Responsible for deciding the number and location of purchase centers and consulting on fixing procurement dates.
Action Required: Collaborate with FCI and State Agencies to establish purchase centers.
FCI and State Agencies:
Impact: Responsible for undertaking procurement of wheat and paddy under MSP operations and establishing purchase centers.
Action Required: Procure foodgrains at MSP, manage storage capacity, and ensure timely payment to farmers.
Key Entities Referenced
Punjab: A state in India, central to the document's focus on wheat and paddy procurement.
Wheat: A major agricultural commodity, specifically in the context of procurement in Punjab.
Paddy: Another major agricultural commodity (unmilled rice), specifically in the context of procurement in Punjab.
Minimum Support Price (MSP): A price intervention mechanism by the Government of India to support farmers' income.
Food Corporation of India (FCI): The nodal central agency of the Government of India responsible for foodgrain procurement and distribution.
Kharif Marketing Season: The period for procurement of paddy.
Rabi Marketing Season: The period for procurement of wheat.
One Nation, One MSP through DBT: A policy implemented to ensure direct benefit transfer of Minimum Support Price to farmers' accounts across the country.
GOVERNMENT OF INDIA
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION
LOK SABHA
UNSTARRED QUESTION NO. 4583
TO BE ANSWERED ON 20TH AUGUST, 2025
REDUCTION IN PROCUREMENT OF WHEAT AND PADDY FROM PUNJAB
4583. DR. RAJ KUMAR CHABBEWAL:
Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
be pleased to state:
(a) whether the Government is aware of the delays and reduction in procurement of wheat
and paddy from Punjab during the 2024-25 season;
(b) the reasons for delayed lifting, inadequate availability of gunny bags and any revised
procurement norms affecting farmers;
(c) whether these delays led to distress sales and financial losses and if so, the steps taken by
the Government to ensure timely procurement and full payment to farmers;
(d) whether any compensation is being considered for losses incurred due to procurement
delays and policy changes impacting Punjab’s farmers; and
(e) if so, the details thereoP
ANSWER
MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS,
FOOD & PUBLIC DISTRIBUTION
(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)
(a) : The period of procurement of paddy for Kharif Marketing Season and wheat for
Rabi Marketing Season is fixed in consultation with respective State Government during
the meeting with Food Secretaries of State/UTs.
There has been no delay in procurement of wheat and paddy in Punjab. The date of
commencement of wheat and paddy procurement in Punjab during Marketing Seasons
2022-23 to 2024-25 is as under:
Marketing Date of commencement of
Season procurement
Wheat Paddy
2022-23 0 1.04.2022 01.10.2022
2023-24 0 1 .04.2023 01.10.2023
2024-25 0 1 .04.2024 01.10.2024-2-
The procurement of wheat and paddy in Punjab for central pool during last three
Marketing Seasons 2022-23 to 2024-25 is as under:
Marketing Procurement (in LMT)
Season Wheat Paddy
2022-23 96.45 186.11
2023-24 121.12 185.28
2024-25 124.57 173.33
The procurement of wheat and Paddy in a state is based upon estimated production,
marketable surplus and agricultural crop pattern.
(b): Creation /vacation of storage space for receipt /storing incoming stocks is a
continuous ongoing process of moving out the already stored stocks of foodgrain. In order
to make additional storage capacity available for receipt/storage of rice after milling of
current crop of paddy, measures like prioritising movement/evacuation of wheat stocks kept
in covered godowns in the State, additional storage capacity hiring, additional outward
movement of rice from Punjab have been resorted to.
Sufficient quantity of gunny bags was available with all procuring agencies before
start of procurement.
(c) to (e): The steps taken by the Government to ensure timely procurement and full
payment to farmers are as under:
(i) FCI, the nodal central agency of Government of India, along with other State Agencies
undertakes procurement of wheat and paddy under Minimum Support Price (MSP)
operation. Coarse grains/millets in central pool are procured by State Government Agencies
only under decentralized procurement system.
(ii) FCI and various State Agencies in consultation with the State Government establish a
large number of purchase centers at various mandis and key points. The number of centers
and their locations are decided by the State Governments, based on various parameters, so
as to maximize the MSP operations. Such extensive & effective price support operations
have resulted in sustaining the income of farmers over a period and in providing the
required impetus for higher investment in agriculture sector for improved productivity.
(iii) Stocks conforming to the Government of India specifications which are offered by the
farmers at purchase centers are procured by the Government Agencies at MSP. If the
farmers get prices better than the support price in open market, they are free to sell their
produce. Presence of Government Agencies ensures prevention of distress sale of food
grains by the farmers.-3-
(iv) Procurement of foodgrains under MSP operations is mandatorily being carried out
through State Procurement Portals which has brought in substantial transparency in the
process with introduction of registration of farmers for sale of their produce at govt.
procuring centers/ man(iis, land/crop verification and online payment of MSP directly into
the farmer’s bank account.
(v) “One Nation, One MSP through DBT” implemented across the country from RMS
2021-22 onwards. Payment of MSP has been ensured directly into farmers' account. DBT of
MSP has brought in responsibility, transparency & real time monitoring in the system.
(vi) in order to widen the reach of MSP opQrations for food grains, Government of India has
made a provision for engagement of Co-operative societies/ Self Help Groups/ Panchayats/
Primary Agriculture Credit Societies (PACS)/Farmers Producer Organisations (FPC)s) by
the State procuring agencies so that maximum farmers, can avail the benefit of price
support operatrons.
See SeqcSc