In Punjab, farmers await better prices

LUDHIANA: Farmers in Punjab seem to be in an enterprising mood and mode this April. This is evident from the fact that a large number of them are preferring to postpone selling their wheat crop till the market is ready to offer them better prices. It may upset the target of procurement agencies like FCI. Many traders from Rajasthan, Madhya Pradesh and Uttar Pradesh have given the farmers an understanding that their stock will be lifted after 3-4 months.

"Like last year, farmers this year too are expecting higher price for their produce. Farmers are getting into the agreement with traders from neighbouring states,” said Khanna Kacha Aartiya Association general secretary Jasdeep singh.

In Khanna and Jagraon mandis, wheat arrival so far has been quite slow. Keeping this in consideration the procurement of wheat may have to be prolonged.

FCI officials, on the other hand, are maintaining that the hoarding is not that widespread. "The production can be 4 million tonnes more across the nation as compared to the last year. I don't think hoarding of wheat by farmers will hit FCI procurement targets," FCI, Punjab, general manager Sarabjeet Singh, told ET

"Arrival is slow as the crop is still in the fields. We are hopeful of surpassing the procurement as compared to the last year," said Punjab food and supplies principle secretary Tejinder Kaur.
It may be pointed that the private procurement companies last year had paid MSP as high as Rs 1,170 per quintal during November and December.

Only this time it is the private traders from the neighbouring states and not the companies that are encouraging hoarding.

During his recent visit to Punjab, FCI chairman Alok Sinha had told ET that the procurement can go up to 200 lakh tonne across the nation. Last year FCI had procured 160 lakh tones of wheat.