Govt may sell basmati paddy in open market

Sarbjit Dhaliwal

Tribune News Service

Chandigarh, December 2

The Punjab Government is mulling over the proposal to sell the PB-1509 variety of rice in the open market and the profit earned thus would be given to farmers concerned from whom it was procured.

With the approval of the Union Government, the state government had procured 1509 at a minimum support price of Rs 1,450 per quintal. However, now its rate has gone up to Rs 1,600 per quintal. Other basmati variety PB – 1121 is fetching a price between Rs 2,100 and Rs 2,600 per quintal in Punjab and Haryana now.

The government authorities are of the view that if 1509 is converted into rice, the out-turn ratio will not be more than 62 kg per quintal. It will cause a huge loss. However, if it is sold in the open market as it is, there will be a profit of Rs 100 per quintal. It can be given to farmers concerned from whom it was procured. The state government has all records in this regard.

“Before going for its disposal, we will have to seek the permission of the Union Government and then the due process of floating tenders will have to be followed,” said a senior official of the state government.

“Only after completing the necessary formalities, it can be sold in the open market,” he added.

Meanwhile, the Union Government has given its sanction for the release of Rs 2,000 crore more to make payment to farmers from whom paddy was procured. The money is likely to be released to farmers concerned on December 4. However, the state government procurement agencies need Rs 5,000 crore more to clear the dues of farmers. This year, the government had got sanctioned a limit of Rs 18,000 crore. It has already been distributed. However, as there is a record arrival of paddy this year, the government had to approach the Union Government again to extend the limit. Already, 139.24 lakh tonne paddy has been procured. Of it, 132.72 lakh tonne has been procured by state government agencies. Last year, till today 115.68 lakh tonne paddy was procured.