Punjab Faces Lowest Paddy Procurement in Years

Punjab, a key player in India’s agricultural sector, is experiencing decline in paddy procurement this season. Despite achieving record levels of rice cultivation, the state has procured only 172.16 lakh metric tonnes (LMT) of paddy. This figure is considerably lower than the target of 185 LMT set by the central government. The procurement process is ongoing but has been marred by several challenges.

Current Context of Paddy Procurement

Punjab’s paddy procurement is at its lowest in five years. The state has recorded the highest area under rice cultivation this year, yet the arrivals at mandis have been minimal. This season, only 50,600 tonnes of paddy reached mandis on November 27, a stark contrast to the 6-7 lakh tonnes per day seen during peak procurement.

Factors Contributing to Low Procurement

Several factors have contributed to the shortfall in procurement: 1. Procurement Delays – Early season issues with rice shellers led to important delays. Rice mills were reluctant to store procured paddy, causing farmers to receive lower prices than the Minimum Support Price (MSP). This situation made farmers hesitant to bring their crops to market. 2. Moisture Level Issues – Paddy is ideally harvested at a moisture level of 21-22%. However, delayed harvesting reduced moisture levels to 14-15%. This lower moisture content resulted in decreased yields, with farmers reporting losses of 2-6 quintals per acre. 3. Decline in Paddy from Other States – Stricter enforcement of procurement policies has restricted the transport of paddy from states without MSP facilities. This has reduced the availability of paddy in Punjab’s mandis, further exacerbating the shortfall.

Impact on Farmers and State Economy

The shortfall in procurement has serious implications for farmers’ earnings. Many farmers have experienced important financial losses due to lower yields and delayed harvesting. The systemic issues affecting procurement also threaten Punjab’s contribution to the central grain pool, which is crucial for national food security.

Comparison with Previous Years

Over the past five years, Punjab has consistently contributed to India’s food grain supply. However, this year’s procurement levels are expected to fall short by approximately 14 LMT, marking a notable decline compared to previous seasons. The combination of high cultivation area and low procurement marks the complexities of agricultural policies and market dynamics.

Looking Ahead

As the procurement season continues until November 30, the challenges faced by Punjab’s farmers and the agricultural sector must be addressed. Systemic reforms may be necessary to ensure fair pricing and adequate support for farmers, thereby stabilising the state’s agricultural output in the future.

Questions for UPSC:

1. Critically analyse the impact of moisture levels on paddy yield in Punjab this season.
2. Explain the reasons behind the decline in paddy procurement in Punjab despite increased cultivation area.
3. What are the implications of stricter procurement policies on farmers’ earnings in Punjab? Discuss.
4. With suitable examples, comment on the role of state policies in shaping agricultural productivity in India.

Answer Hints:

1. Critically analyse the impact of moisture levels on paddy yield in Punjab this season.

1. Optimal moisture for harvesting is 21-22%; lower levels lead to reduced yield.
2. This season, delayed harvesting resulted in moisture levels dropping to 14-15%.
3. Farmers reported yield losses of 2-6 quintals per acre due to moisture issues.
4. Lower moisture levels affect grain quality and marketability.
5. Increased temperatures during the milking stage further impacted yield negatively.

2. Explain the reasons behind the decline in paddy procurement in Punjab despite increased cultivation area.

1. Procurement delays due to issues with rice shellers and millers unwilling to store paddy.
2. Only 50,600 tonnes arrived in mandis on November 27, far below previous peaks.
3. Farmers delayed harvesting fearing low prices, resulting in lower moisture and yields.
4. Stricter enforcement of procurement policies limited paddy transport from other states.
5. Overall systemic issues have led to important shortfalls in procurement levels.

3. What are the implications of stricter procurement policies on farmers’ earnings in Punjab? Discuss.

1. Stricter policies have reduced the availability of paddy in mandis, lowering market competition.
2. Farmers faced lower prices than the Minimum Support Price (MSP) due to procurement delays.
3. Many farmers experienced financial losses due to reduced yields and delayed harvesting.
4. Decreased earnings threaten farmers’ livelihoods and can lead to increased rural debt.
5. Long-term implications could include reduced investment in agriculture and crop diversification.

4. With suitable examples, comment on the role of state policies in shaping agricultural productivity in India.

1. State policies determine Minimum Support Prices (MSP), influencing farmers’ crop choices.
2. Example – Punjab’s MSP for paddy encourages high cultivation but can lead to over-reliance on rice.
3. Procurement policies impact the efficiency of the supply chain and farmers’ earnings.
4. Policies on water usage and crop rotation affect sustainable agricultural practices.
5. Effective state policies can promote diversification and enhance overall agricultural productivity.