Punjab/ Haryana Procurement Estimates- KMS 2024-25

Punjab and Haryana are the food bowls of our country and like every year 185 LMT and 60 LMT of paddy is estimated to be procured from these two states respectively during KMS 2024-25. These two States account for almost 40 percent of Central Pool procurement. The procurement operations are ongoing in full swing in both the States. Though the procurement of paddy commenced on October 1, 2024 in Punjab and on September 27, 2024 in Haryana, due to heavy rainfall in September and the resultant higher moisture content in paddy, the harvesting and procurement were delayed. However, despite a late start, both the states are well on track to achieve the estimates of paddy procurement by stipulated dates i.e November 30^th2024 for Punjab and November 15^th for Haryana.

Procurement operations

Till date 10 lakh farmers in Punjab and 4.06 lakh farmers in Haryana have registered to sell their produce in KMS 2024-25. In Haryana 45 LMT of Paddy has been procured till 29th October 2024 which is 87 % of 52 LMT procured till 29th October 2023. In Punjab 67 LMT of Paddy has been procured till 29th October 2024 which is 80% of the quantity of 84 LMT procured last year on the same date. Compared to the previous year, the procurement of paddy in Haryana and Punjab is similar compared to the pan-India procurement in percentage terms, by 29^th Oct 2024.

Facilitation of Rice Millers

Like every year, rice millers are on boarded by the State government for the milling operations. Out of 4400 millers who applied for delivery of Custom Milled Rice (CMR), work has been allotted to 3850 millers by the state government of Punjab by Oct 29^th, 2024. Further, in Haryana, 1452 millers applied for delivery of CMR and work has been allotted to 1319 millers by the state government. Every day on an average, around 4 LMT of Paddy is being lifted from the Punjab Mand is which indicates that the remaining estimate of 118 LMT of paddy will be smoothly achieved by November 30^th, 2024. Similarly, in case of Haryana, the remaining estimate of 15 LMT shall be easily achieved by 15^th Nov 2024 keeping in view the average lifting of paddy of appx 1.5 LMT per day. Procurement of Paddy in Kaithal and Kurukshetra districts, including mandis at Dhand and Pundri, is in full swing and almost at the level of last year's procurement figures.

With the specific aim of facilitating Rice millers, an app based FCI Grievance Redressal System (FCI GRS) for Rice Millers has been launched on 28th October 2024 by the Union Minister of Consumer Affairs, Food and Public Distribution. This will facilitate rice millers in getting their grievances addressed by the FCI in an efficient, transparent and time bound manner.

MSP Regime Strengthened

Union Government is committed to ensure that the benefit of MSP regime is smoothly realized by all the farmers. The MSP of paddy has increased from Rs 1310/Qtl in 2013-14 to Rs 2300/Qtl in 2023-24. Since 2018-19, MSP has been assured with a return of at least 50% over all-India weighted average cost of production. As on 29^th Oct, 2024, an amount of Rs 13211 crore has been released to350961 farmers in Punjab and an amount of Rs 10529crore has been released to 275261 farmers in Haryana for KMS 2024-25. The amount is being credited to the bank accounts of the farmers through DBT within 48 hours of procurement. The entire procurement operations have been digitized to improve efficiency, transparency and accountability which reflects the commitment of the Union Government to further strengthen the MSP regime.

Record Budgetary Allocation

The budgetary allocation and release for food subsidy has increased to more than four times in the last ten years than the preceding ten years. Around 21.56 lakh Crores has been spent on food subsidy during 2014-15 to 2023-24 as compared to around 5.15 lakh Crores during 2004-05 to 2013-14. During the COVID period, the fund allocation towards food subsidy was increased substantially due to 5Kg of additional food grains made available to each NFSA beneficiary free of cost, which continued till December 2022.  Since 1.1.2023, the Central Issue Price (CIP) has been made zero keeping in view welfare of the poor and vulnerable sections of the society and ensuring uniformity in the entire country. AAY households and PHH beneficiaries are being provided foodgrains free of cost under PMGKAY from 01.01.2023.

The Union Government is committed to procure the estimated target of 185 LMT and 60 LMT of Paddy in Punjab and Haryana respectively, and not a single grain shall be left unprocured.