Paddy smuggling from other states, another headache for Punjab amid slow arrivals

More than a month since paddy procurement started in Punjab, just 64.20 lakh metric tonnes (LMT) of paddy has arrived in the mandis so far. As paddy arrivals get impacted due to floods and post-monsoon incessant rains, there is another big worry for the state procurement agencies – that of cheaper paddy from other states being smuggled in and passed on for government procurement at the higher minimum support price.Till date, three FIRs have been lodged against the buying of cheaper paddy, mainly from Rajasthan and Uttar Pradesh, and them selling it in mandis of Punjab. These FIRs have been registered in Fazilka, Faridkot and Muktsar.Officials have been told to remain vigilant and ensure that all heaps of paddy that land in the mandis are tracked back to the farmers of the state. The Director, Food and Supplies, has now shot off letters to the field staff in the districts that share borders with Rajasthan and Haryana to keep check on this illegal smuggling of paddy.It is learnt that some unscrupulous traders have started buying paddy at Rs 1,200-Rs 1,800 per quintal from the above-mentioned states and sell it at the MSP of Rs 2,389 per quintal. Though the 22 inter-state checkpoints are guarded, the paddy is still being smuggled in the state. Officials in the state Food and Supplies Department are on high alert to prevent this sale of smuggled paddy at the MSP in the mandis here. This is not only because the government wants to first buy the produce grown in the state, but also because it fears that the Central government may act against the Punjab Government if the practice is not immediately stopped. During the previous Congress regime in Punjab, the Centre had taken a serious note of the bogus procurement, which was discovered when procurement of paddy had exceeded the total production. A full scale investigation had then been launched.

Till Wednesday, only 64.20 LMT of paddy had arrived in the mandis of the state. Originally, a target to procure 175 LMT of paddy was set. This target is unlikely to be met because of the fall in the yield caused by post-monsoon showers and floods having devoured standing crops on over 4 lakh acres. “We have revised our estimates to 165 LMT and are sure of meeting this new target. The peak in paddy procurement will begin now,” said a senior government official. So far, about 33 per cent of the crop has been harvested in Punjab.

Meanwhile, the Principal Secretary, Food, Civil Supplies and Consumer Affairs Department, had written a letter to the DGP Punjab, almost a fortnight ago, saying unscrupulous elements were trying to smuggle cheaper paddy from other states and sell it at the higher MSP, “… which raises the possibility of bogus procurement. This also causes financial loss to the procurement agencies”. He had sent a list of 22 inter-state checkpoints to the DGP and sought the deployment of the police there. Some rice-sheller owners are also suspected of being involved in this racket and cases against the sheller owners of Muktsar and Fazilka were registered on October 20.