Govt-millers’ tussle over storage space leads to distress sale
GLUT-LIKE SITUATION Of 7.8 lakh tonne paddy procured so far, less than 10% has been lifted; govt says can’t buy till millers fall in line
PATIALA:DUE to the tussle between the state government and rice millers over signing of contracts and millers’ refusal to provide space for storing paddy, distress sale of the crop has started. Only 7.8 metric tonne has been purchased leading to glut in mandis of Khanna, Ludhiana, Gurdaspur and Amritsar, where the crop is selling at ₹200 below the MSP. Total arrival of the crop, so far, is 8.8 lakh tonne.
By the end of this week more is to arrive, adding to the pressure on space. The state expects a production of 170 lakh tonne.
At Khanna, the largest mandi in Asia, there is hardly any space for farmers to unload their crop for procurement, as the entire market is full of stock of purchased stock and there is hardly any lifting. “We are not purchasing paddy, as millers are not cooperating. We cannot purchase, if they won’t allow us to store paddy. I can’t take risk of purchasing paddy, if its not lifted from market and stored in the allotted rice mill. Until the stock reaches the rice miller, it is my sole responsibility,” said an official in the food and civil supplies department.
ONLY 15% MILLERS HAVE SIGNED DEAL WITH GOVERNMENT
The situation is set to intensify, as till October 10, only 15% (511) of 4,092 rice millers had signed an agreement with the Punjab food and civil supplies department for milling of paddy for the Food Corporation of India (FCI). Punjab does not have own space to stock paddy. Usually, this process is completed before September 30. “I have sold my paddy at ₹200 below MSP to a private miller. There is no government purchase,” said Surjit Singh, a farmer, at Bhagatanwala grain market.
Punjab Rice Millers Association president Tarsem Saini said they would not sign an agreement with the government until the issue of storage and clearance of stock by the FCI was resolved.
“I fail to understand why the state government is opposing us. Our grudge is against the FCI and the central government, as they have lifted stocks of previous years from Punjab, leaving almost negligible space to store new milled rice,” he said, adding that the Punjab government should pressure the Centre to lift stock of previous years.
“Almost 80% of storage space is already full; another crop is arriving. Under the present policy, milling won’t be completed before October 2020, which is a loss-making formula. Millers can’t take the risk of holding rice beyond March 2020, as increase in temperature decreases the weight of stocked rice, due to loss of moisture,” he said, reiterating that the rice millers would not lift stock. He admitted that due to the stand-off, distress sale of paddy was happening.
Food and civil supplies principal secretary KAP Sihna said he was optimistic that millers will start lifting. “We are in the process of signing agreements with rice millers.” CHANDIGARH: Against the target to deliver 28,000 subsidised machines to Punjab farmers for in-situ management of paddy stubble, only 6,286 have been delivered so far, hampering the drive against straw burning.
A variety of machines, including happy seeders, multchers, straw shredders and super straw management system, are to be given on 50% subsidy to an individual farmer and 80% to farmer groups.
The agriculture department has received 14,500 applications for straw management machines so far. The state has reported 623 cases of paddy stubble burning since September 23.
The agriculture department attributes the delay in delivery of machines to floods in August and prolonged rainfall at the crop maturing stage. The empanelment process of vendors by the Union agriculture ministry, which ended in August, also delayed the delivery process, prompting the state government to ask Centre to extend the last date for giving machines from September 30 to November 15.
The government has fixed a target to procure 170 lakh tonnes of paddy this season. The procurement is expected to by midnovember.
“There would be steep rise in stubble fire cases by month-end and it will be difficult for us to control it,” said Krunesh Garg, member secretary of the Punjab Pollution Control Board.
Though the number of stubble fire cases increased to 49,950 last year as compared to 46,000 in 2017, the area under farm fires fell by 9.95%. Of the ₹1,150 crore sanctioned to stop stubble burning in paddy growing states, Punjab got ₹665 crore, which was to be spent in two years. This year, ₹256 crore is to be spent on giving subsidised machines.
Additional chief secretary (agriculture) Viswajeeet Khanna said efforts are on to deliver machines so that farmers can use them effectively.