Revenue from wheat may drop due to lesser arrivals in Punjab

Low wheat arrivals because of lesser yield caused by freak weather conditions this season is likely to hit Punjab's revenue with the state expecting about 15 per cent drop in mobilisation from winter crop.
Crop arrivals in Punjab have shrunk significantly in the ongoing rabi marketing season (2015-16).
Against 125 lakh tonnes wheat procurement target set for the current season, the actual purchase is likely to remain about 102 lakh tonnes, a Food Corporation of India (FCI) official said here.
Revenue collection from foodgrain is a major source of income for the state as it levies 14.5 per cent of taxes and other levies, including purchase tax (5 per cent), market fee (2 per cent), rural development fund (2 per cent) and infrastructure cess (3 per cent) on wheat.

Punjab annually collects Rs 1,000-1,200 crore as taxes and levies from wheat crop alone.
"There is going to be lesser revenue collection from wheat crop this year due to reduction in crop arrivals as against revenue collected in corresponding period," a senior official of Punjab Excise and Taxation department said here.

Punjab, the food bowl of the country, is looking at over 10 per cent drop in overall wheat crop yield because of the adverse impact of freak weather conditions.
Several areas in the state had even faced 20-25 per cent drop in wheat yield because of adverse impact of untimely rains and hailstorm in February, March and April this year.

Punjab had projected wheat output of 168 lakh tonnes for the current season.
The state had hit all time wheat production of about 180 lakh tonnes in 2011-12 and then 176 lakh tonnes in 2013-14 because of favourable weather conditions.
In the ongoing wheat procurement season, 101 lakh tonnes of crop has been purchased by state-owned procurement agencies so far from Punjab.
"Wheat procurement is likely to remain at about 102 lakh tonnes," the FCI official said.
Last season, 118 lakh tonnes of wheat was purchased from Punjab.