Agriculture in Punjab: Of 129 LMT wheat crop procured, 8% done by private traders
As Punjab’s wheat procurement season wraps up, 129 LMT has been procured—exceeding the 124 LMT target. Private traders bought 10 LMT (8.23%), up from last year’s 7.18%. Competitive pricing above MSP and relaxed procurement hesitation despite higher state levies spurred private interest. So far, 102 LMT has been lifted from markets, amid declining daily arrivals.
Chandigarh: As the wheat procurement season nears its end in Punjab, 129 lakh metric tonnes (LMT) of wheat has been procured so far – 118 LMT by the procuring agencies and 10 LMT (8.23%) by the private traders. At the start of the season, Punjab had set a target of 124 LMT, but made preparations for procuring up to 132 LMT. The last year’s total procurement figure was 130 LMT – 123 LMT by the procurement agencies and 7.18 LMT by the private traders. In many districts, the price paid by private traders was above the minimum support price (MSP) of Rs 2,425 per quintal. Last year, the corresponding figure for purchase by the traders was 5.51%.The daily arrival in the mandis dipped to 45,941 MT on Wednesday. So far, 102 LMT of the procured wheat has been lifted from the grain markets. Encouraged by the profits earned in the previous seasons, the private traders actively purchased wheat from Punjab farmers this season. However, the anticipated bumper yield this season posed a risk of shrinking profit margins, which were usually generated by stocking and supplying wheat to local flour mills at a higher price over the year. Earlier, the private traders used to be reluctant to purchase wheat in Punjab because of the higher taxation regime – 8.5% imposed for wheat procurement. This includes 3% market fee,
3% rural development cess and 2.5% arhtiyas’ commission while most of the other key states imposed procurement levies of around 3%.
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Source : The Times Of India
