Ludhiana: Private players dominate, offer more than MSP
Private traders in Ludhiana have procured over 1.6 LMT of wheat this season, surpassing last year’s total, driven by prices above MSP. Government agencies lag with 6.39 LMT procured, as private participation grows. With 97% of the district’s target met and ₹1,927 crore disbursed to farmers, officials assure timely procurement and smooth operations before the May 15 deadline.
Private traders have ramped up their participation in the ongoing wheat procurement season in Ludhiana, surpassing their last year’s purchase even before the conclusion of the ongoing season. As per data, private traders have procured over 1.6 lakh metric tonnes of wheat so far which stood at 19.9% of total purchase, already exceeding the 1.13 lakh metric tonnes, they purchased in the entire season last year.
In contrast, government agencies are seemingly trailing behind with 6.39 lakh metric tonnes of wheat procured by them till May 6, compared to 7.1 lakh metric tonnes, last year. Among government agencies, Pungrain has led the chart by procuring 1.8 lakh metric tonnes, followed by Markfed at 1.76 lakh metric tonnes, Punsup with 1.2 lakh metric tonnes, Punjab State Warehousing Corporation (PSWC) at 0.93 lakh metric tonnes and Food Corporation of India (FCI) with 0.59 lakh metric tonnes.
While Pungrain remains the largest procurer among these agencies, it is still falling short of its last year’s total of 2.09 lakh metric tonnes, highlighting the growing shift towards private traders.
The increase in private trader participation is being largely attributed to the higher prices they offer for wheat, surpassing the minimum support price (MSP) of ₹2,425 per quintal. As a result, many farmers have been choosing to sell their produce to private traders for better returns, who are offering more rates per quintal than the MSP.
According to official data, around 8.07 lakh metric tonnes of wheat have arrived at 147 mandis across Ludhiana district. Of this, 8.04 lakh metric tonnes have already been procured, representing 97% of the target of 8.29 lakh metric tonnes. With the procurement season set to end on May 15, officials have assured that the remaining stock will be procured in time, allowing the district to meet its estimated target.
Additionally, out of the total wheat procured, only 6.8 lakh metric tonnes have been lifted so far, with private traders securing 1.58 lakh metric tonnes and government agencies taking 5.26 lakh metric tonnes.
The financial aspect of the procurement process also reflects the momentum of the season, with a total of ₹1,927.4 crore already paid to farmers. Of this, ₹395.3 crore has been paid by private traders, and remaining ₹1,532.1 crore has been disbursed by government agencies.
When contacted, Sartaj Singh Cheema, district food supplies controller (Ludhiana West), asserted,. ”Despite the increasing participation of private traders, the procurement process has proceeded smoothly, with farmers receiving timely payments. Due to meticulous planning and efficient execution, we have already achieved 97% of our target. The process has been seamless, ensuring that farmers are supported and compensated promptly.
To Read more about Wheat News continue reading Agriinsite.com
Source : Hindustan Times
