Workers weigh and pack paddy bags at a grain market.
| Photo Credit: Reuters

Amid complaints and protests by farmers’ organisations in Punjab that paddy procurement from the State has been delayed, the Centre said on Saturday (November 9, 2024) that the Food Corporation of India (FCI) and the State agencies have procured 120.67 lakh metric tonnes (LMT) paddy from the State.

Watch | What is Minimum Support Price?

The Centre said so far 6.58 lakh farmers in the State have received the benefits of procurement with minimum support price (MSP) worth ₹27,995 crore. “As such paddy procurement is going on smoothly,” the Union government said.

“A total quantity of 126.67 LMT of paddy has arrived in the Punjab mandis as of November 8, 2024, out of which 120.67 LMT has been procured by State agencies and the FCI,” the Food Ministry said in a statement. ‘A’ Grade paddy is being purchased at MSP at the rate of ₹2,320 per quintal and the total paddy purchased till date in the ongoing kharif marketing season (KMS) amounts to ₹27,995 crore. “Further, 4,839 millers have applied for shelling of paddy and 4,743 millers have already been allotted work by Punjab State Government,” the Centre said.

Earlier, the Samyukta Kisan Morcha (SKM) had protested against the delay in paddy procurement. The SKM had alleged that with the FCI delaying procurement of milled rice of last season, rice mills are unable to keep and process the fresh stock of paddy.

“The procurement of paddy for KMS 2024-25 has commenced in Punjab from October 1, 2024 and 2,927 designated mandis and temporary yards are operational throughout the State for smooth procurement from the farmers of Punjab. The Central government has fixed an estimated target of 185 LMT for paddy procurement for the ongoing KMS 2024-25 which shall continue up to November 30, 2024,” the Centre said and added that the paddy procured from the mandis is in full swing and the paddy being lifted is more than the quantity arriving daily.

Farmers carry paddy saplings for plantation in a field. File
| Photo Credit: PTI

The government on June 19 raised the minimum support price (MSP) for paddy by 5.35% to ₹2,300 per quintal for the 2024-25 kharif marketing season.

The hike in paddy support price comes despite the government sitting on surplus rice stocks, but it is significant ahead of elections in states like Haryana, Maharashtra, Jharkhand, and Delhi.

Announcing the MSP increase, Information and Broadcasting Minister Ashwini Vaishnaw said the Cabinet has approved the minimum support prices for 14 kharif (summer) crops based on recommendations from the Commission for Agricultural Costs and Prices (CACP).

The MSP for ‘common’ grade paddy has been raised ₹117 to ₹2,300 per quintal, while for the ‘A’ grade variety it has been hiked to ₹2,320 per quintal for the upcoming kharif season, Mr. Vaishnaw told reporters.

This is the first Cabinet decision taken in Prime Minister Narendra Modi’s third term in office, the Minister said.

Mr. Vaishnaw said the government had a clear policy decision taken in the 2018 Union Budget that MSP should be at least 1.5 times the cost of production, and this principle was followed in the latest MSP hike. The cost was scientifically calculated by CACP, he added.

The Food Corporation of India currently holds a record stockpile of around 53.4 million tonnes of rice, which is four times the required buffer for July 1 and sufficient to meet demand under welfare schemes for one year without any fresh procurement.

Despite lower rainfall of about 20% across the country since the start of the monsoon season on June 1, weather conditions are now favourable for further advancement of the rains, according to the meteorological department.