Punjab, Haryana gear up for wheat procurement

Punjab and Haryana are all set to start the next procurement season for wheat from April 1, with the Food Corporation of India (FCI), the central agency, and state agencies expecting to lift a total 125 lakh tonnes of the grain during rabi marketing season 2008-09.

"The minimum support price (MSP) for wheat is now Rs 1,000 a quintal. The Reserve Bank (RBI) has sanctioned a credit limit of Rs 8,013 crore for Punjab this season, while Haryana has sent a proposal for Rs 2,696 crore in order to pay the growers," an official said.

Punjab and Haryana are expecting increase in arrival of wheat in mandis this year at 105 lakh tonnes and 45 lakh tonnes, respectively.

However, last month, FCI had expressed concern over the dwindling arrival of wheat in both states. It is perceived that farmers might sell crop directly to other states after the 'avoiding' conventional route of bringing their crop in the markets.

"The Punjab government has notified 1,600 mandis for the procurement, while Haryana has approved 362 markets sheds in the entire state for lifting wheat, which will commence from April 1," an official of the Food and Supplies Department said.

Punjab is expecting to procure 85 lakh tonnes of wheat during this season, the state has set different targets for various procurement agencies.

According to a senior official of the Punjab Food and Supplies Department, Pungrain, Markfed and Punsup would procure 22 per cent each, while Punjab Warehousing, Punjab Agro and FCI would buy 13 per cent, 10 per cent and 11 per cent, respectively of the total expected procurement.

Haryana is also hoping to lift over 40 lakh tonns of wheat from the state with procurement agencies such as Hafed, Confed, Haryana Warehousing, Haryana Agro, Food and Supplies and FCI this season.

In 2007-08, the total procurement of wheat from Punjab and Haryana stood at 67.80 lakh tonnes and 33.5 lakh tonnes, respectively.

The arrival of wheat in the states during 2007-08 has gone down by 26.31 lakh tonnes and 27.54 lakh tonnes, respectively, as compared with arrival in 2001-02.