Paddy procurement commences in Punjab today

The state government has secured a Rs 15,000-crore cash credit limit from the Reserve Bank of India (RBI) for the initial fortnight of the paddy procurement season starting Tuesday. Officials have requested a total credit limit of Rs 45,000 crore for the entire procurement period, which is disbursed monthly to facilitate the purchase of estimated 175 lakh metric tonne (LMT) paddy expected this season.

Despite floodwaters damaging standing paddy crop on around 3.47 lakh acres, production is not expected to decline overall, as the yield in unaffected areas is likely to increase. The worst flood-related damage has occurred in Gurdaspur, Amritsar, Fazilka, Kapurthala, and Ferozepur districts, with all districts, except Fatehgarh Sahib, reporting some crop loss.

This year, the government advanced the paddy sowing date, prompting an earlier procurement by two weeks. However, persistent floods and heavy rainfall for nearly three weeks in August across the state have delayed harvesting, as the moisture content in crop remains above the acceptable 17 per cent limit. As a result, the harvesting is expected to get delayed till the crop becomes dry.

CM Bhagwant Mann assured farmers that there would be no cut in minimum support price (MSP).