This year, the MSP for wheat is Rs 1,735 per quintal, a hike of Rs 110 per quintal over the last year’s MSP of Rs 1,625 per quintal. (Express Photo by Praveen Khanna/Files)
Ahead of the wheat procurement season, the Punjab government has demanded a Cash Credit Limit (CCL) of Rs 21,150 crore from Reserve Bank of India (RBI) for purchasing around 125 lakh tonnes of wheat in the coming harvesting season, which begins in first week of April. The CCL is released by around five dozen banks on RBI’s directions. Sources in the food and civil supplies department said that for smooth procurement of wheat, the approval should reach the state before the beginning of harvesting. This year, the MSP for wheat is Rs 1,735 per quintal, a hike of Rs 110 per quintal over the last year’s MSP of Rs 1,625 per quintal.
Almost every year, the CCL is delayed by several weeks as a result of which farmers do not get their payments on time. As per norms, they should receive their payments within 72 hours of selling their produce to the state’s procurement agencies. “Due to delay in getting the payments, farmers are forced to sell their produce to private players for much less a price than the MSP so that they get immediate payments instead of waiting for weeks after selling to government agencies,” said Bhartiya Kisan Union (Dakunda) general secretary Jagmohan Singh.
There are around 152 mandies (grain markets) in Punjab, apart from around 1,650 other procurement centres. “In Malwa, the crop is harvested earlier as compared to Doaba and Majha regions. So the CCL should reach timely because the state government also takes 7-10 days to clear the payments after receiving it from the RBI,” said farmer Jagdip Singh from Sangrur. Last season, farmers received payments a one month after selling their produce government agencies, he said.
Truckers continue protest
Meanwhile, truck operators in the state have boycotted the tenders for transporting wheat from grain markets as a protest against the state government’s decision to not issue tenders for transportation of two main crops, wheat and paddy, for the entire year.
This year, the government has called for bids only for the wheat season.
President of Punjab Arhtiya Association Ravinder Singh Cheema said the government should resolve the issue with truckers before the beginning of harvesting or else there would be no space in grain markets to keep around 125 lakh tonnes of wheat as they needed to clear mandies daily by transporting the daily purchase of crop to the government godowns. He also appealed truckers to adjust according to the changed circumstances so that procurement was not hurt and farmers not harassed.