Wheat purchase by private players sees upward trend across Punjab.
By Vishal Joshi
Initial wheat purchase data shows an upward trend in the role of private players where the non-government agencies have recorded a purchase of about 6% of the total grains hitting the mandis across Punjab.
Market watchers say the rabi marketing season of 2024-25 may touch a record figure of 10 lakh tonnes by the private buyers as the state authorities peg the arrival at 130 lakh tonnes.
As per the official estimation, Punjab is expected to see an arrival of more than one lakh tonnes in the next two weeks.
Wheat procurement commenced on April 1 and as per the Punjab Mandi Board data, in the first three weeks, a total of 24.80 lakh tonnes of wheat arrived in different mandis established in 22 districts.
Of it, 1.42 lakh tonnes were bought by the private players while 19.23 lakh tonnes were procured by the government agencies till April 21.
The minimum support price (MSP) fixed for the ongoing rabi marketing period is ₹2,275 per quintal.
Mandi Board data says that the farmers have been paid up to ₹2,350 to date and the stakeholders attribute higher rates to the engagement of private parties.
Last year, non-government players recorded a total share of 4.50 lakh tonnes or 3.5% of the total 127 lakh tonnes of wheat procured.
Officials said in 2007, the private sector players had registered 9.18 lakh tonnes of wheat.
Joint secretary of the Roller Flour Millers Association of Punjab Shubham Goyal said on Sunday that it is felt that the stock to be auctioned through the open market sale scheme (OMSS) will not be sufficient to meet the private traders’ demand making private buyers buy more wheat.
“But the real picture will emerge in the next few days after heavy wheat arrival is reported,” added Goyal.
Another miller said that earlier buying wheat from Bihar and UP was cheaper, but several millers switched over to the local market to meet their demands.
“There are also speculations over annual auctions of wheat by the Food Corporation of India (FCI) under the OMSS. Wheat processors find it economical for bulk purchase to avoid the impact of higher rates,” he added.
This year, the arrival is slower by 68% than last season as harvesting was delayed due to climatic conditions.
After a meeting with the top officials of all procurement agencies and the deputy commissioners on Sunday, chief secretary Anurag Verma said the wheat arrival in the state is likely to witness 132 lakh tonnes, an increase of 5 lakh tonnes from the last season.
“All arrangements in the mandis are placed and farmers being paid in less than the prescribed time of 48 hours. Daily special trains are being arranged by the state government by continuously coordinating with the FCI. Till April 20, 61,000 tonnes of wheat were sent through special vehicles and today another 24,000 tonnes of wheat were sent through nine special vehicles. On Monday, 26 special trains will be run as a part of smooth wheat procurement,” he added.
Wheat growers in Sangrur have shown the maximum interest by selling 52,000 tonne to private players followed by Patiala (23,000) Ludhiana (21,000 tonne) and Faridkot (11,000 tonne).
Mandi Board data says single-day wheat arrival on April 21 was 7 lakh tonnes and 6.50 lakh tonnes was purchased by all stakeholders.
Today, the government agencies procured 6.14 lakh tonnes while the rest of 36,000 tonnes was bought by the private players and Pathankot is the only district where no grain was sold to private players to date.
This article has been republished from The Hindustan Times.