Punjab surpasses wheat procurement target

Wheat procurement in Punjab touched at all-time high of 10.71 million tonnes in the current season, surpassing the fixed target of 10.5 million tonnes. Last season, the state procured 10.61 million tonnes.

It may be recalled that Punjab had lowered its wheat output estimates by 500,000 tonnes to 15 million tonnes, as untimely rain caused widespread damage to the crop this rabi season. The state had earlier estimated production at 15.5 million tonnes this rabi as against last year’s output of 15.7 million tonnes. Due to reduction in crop estimates, the state government targeted to procure 10.5 million tonnes of wheat during this season.

However, the state surpassed its procurement target on May 5, 2009, by procuring 10.55 million tonnes of wheat. Officials claimed that the state was witnessing record arrivals in various mandis following early harvesting and weather panic. As on May 10, the state procured 10.71 million tonnes.

Currently, wheat is being traded at Rs 1,080-1,085 per quintal in Punjab, as compared with other states, where it is below the minimum support price.

Of the total procurement, government agencies procured 10.69 million tonnes till May 10, whereas private traders procured 22,000 tonnes.

The trend was almost similar last year (up to May 10) with government agencies buying 9.67 million tonnes during the corresponding period.

Due to high MSP and taxes in the state, private purchases have gone down drastically. Buyers have to pay 11.5 per cent in the form of various taxes, which include 2 per cent rural development fund, 2 per cent market fee, 2.5 per cent kaccha arhitya, 4 per cent value added tax, and 1 per cent infrastructure development cess. On the other hand, the tax is 10.5 per cent in Haryana, followed by 8 per cent in Uttar Pradesh and 7.5 per cent in Rajasthan.

The state government has made elaborate arrangements for the procurement of 11.5 million tonne of wheat and has set up 1,547 procurement centres.