According to the Union Food Ministry, Paddy procurement at minimum support price in Punjab has risen to nine times which is 15.99 lakh tonnes in the first 13 days of the ongoing Kharif crops marketing season as compared to the last season paddy procurement which was only 1.76 lakh tonnes.
Paddy procurement started early in Haryana and Punjab
Commencement of the paddy procurement in Punjab and Haryana started on September 26 due to the early arrival of the crops whereas it started from October 1 in other States.
More than 80 percent of the country’s paddy crops are grown in the Kharif season. The government undertakes the paddy procurement at MSP through the Food Corporation of India (FCI) and other state agencies.
Paddy procurement increased by 9 times
The Food Ministry said in the statement, “In the ongoing Kharif season, Punjab reported an unprecedented increase in procurement from 1.76 lakh tonnes in Last year to 15.99 lakhs in this year as on October 8, which 9 times more than Kharif procurement processed in last year.”
Procurement increased in the other states as well
As of October 8, total procurement of paddy across all states has increased by 48 Percent to 26.3 lakh tonnes this year from 17.7 lakh tonnes last year, with much of the paddy crops purchased from Punjab.
The Ministry further informed that Paddy procurement in Tamil Nadu increased to 9,517 tonnes from 320 tonnes, whereas in Uttar Pradesh it has increased to 4,423 tonnes from 92 tonnes in the 13 days.
For the current year 2020-2021, the central government has fixed the MSP of paddy of the common grade at Rs 1,868 per quintal whereas the MSP of Paddy of A-grade has fixed at Rs 1,888 per quintal.
Apart from it, the government with the help of nodal agencies is buying pulses and oilseeds at MSP under the Price Support Scheme (PSS). The PSS gets operationalized when the market rate falls below the MSP.
Till October 8, approximately 455.60 tonnes of moong at MSP value of Rs 3.28 crore has been procured from 324 farmers in Haryana and Tamil Nadu.
And 5,089 tonnes of copra at the MSP value of Rs 52.40 crores have been procured from 3,961 farmers in Karnataka and Tamil Nadu in the said period.
For the crops like copra and urad, rates are above or at the MSP.