Punjab suffered Rs 5,000-crore loss to paddy crop due to floods

The state suffered a loss of 17.54 lakh metric tonne (LMT) in paddy production due to floods in August-September, resulting in an economic loss of over Rs 5,000 crore. This year, total paddy procurement stood at 157.39 LMT, down from 173.93 LMT last year. Consequently, farmers received Rs 37,237.42 crore this year, against about Rs 43,000 crore the previous year, reducing money circulation and affecting consumer spending and state tax revenue.

An inquiry by the Food and Supply Department into higher paddy arrivals in the flood-hit districts of Amritsar, Tarn Taran and Fazilka revealed that increased cultivation of non-basmati paddy offset the flood damage. Despite floods, paddy arrivals in these districts matched last year’s levels, prompting the government to halt paddy purchase there.

A senior food and supply official said, “Our inquiry revealed that this was purely because of the cyclical fall in global basmati prices last year, which led farmers to shun basmati and cultivate more non-basmati varieties. As the area under non-basmati increased, so did its production. As a result, paddy arrivals, despite flood damage, equalled last year’s figures.”

Last year, the state procured 33.02 LMT basmati paddy, but this year only 15.10 LMT produce were brought to the mandis by November 17. The average price fell from Rs 3,744 per quintal last year to Rs 3,400 this year.