Kisan Mazdoor Morcha and Samyukt Kisan Morcha (SKM non-political) have announced plans to block roads to and from four regions in Punjab starting at 1 PM on October 26. Farmer leader Sarwan Singh Pandher stated that demonstrations will be staged at the main highways at Badrukhan in Sangrur (Sangrur-Barnala Highway), main highway in Tanda, Sathiali Pull (Bridge) in Gurdaspur, and Dagru in Moga.

Pandher claims that the current issues with paddy procurement is an attempt by the government to enforce the repealed farm laws introduced in 2020. These laws were perceived by many as facilitating the privatization of agriculture in Punjab. The farm laws faced significant criticism due to fears that they would dismantle the Minimum Support Price (MSP) system and leave farmers vulnerable to exploitation by large corporations.

“…As far as today’s program is concerned it is due to the non-procurement of paddy…Badrukhan and Sangrur national highways are where the program will be held and the timing is 1 pm, we will block it for unlimited time…” said Pandher. He said that the paddy procurement.

Situation with the rice millers

Rice mill owners in Punjab reported significant losses last year due to hybrid rice varieties yielding less rice than expected. They claim that these hybrid varieties yield less rice (62-63%) compared to the 67 percent expected from government-approved varieties. This year, hybrid cultivation has increased, especially in Doaba and Majha. The millers and shellers association have been asking for leniency on the government-mandated yield.

The Millers Association ended their strike on October 5 after assurances from Chief Minister Bhagwant Mann. Millers accused the government of pressuring them to end protests. Their refusal to mill government-procured paddy has caused congestion in mandis, where farmers fear that the grain will be spoiled. They offered to store paddy temporarily but wont mill until demands are met. Their concerns include creating space in godowns, better rates, and milling contract assurances.

Current State of Paddy Procurement

According to reports, only 37.68 lakh tonnes of paddy have been procured by the Food Corporation of India (FCI) from Punjab as of October 24. This is significantly lower than the 49 lakh tonnes procured at the same time last year and far below the expected 185 lakh tonnes for the entire season. The peak procurement season ends in the first week of November.

During a review meeting at Anaj Bhawan, Food, Civil Supplies, and Consumer Affairs Minister Lal Chand Kataruchak was informed by senior department officers that the procurement season is gaining momentum. However, the slow movement of procured paddy from the mandis (grain markets) remains a major concern. While around half of the procured paddy had been moved out of the mandis by this time last year, only about 10.55% has been moved this year. This glut of paddy in the mandis is slowing down the entire procurement process.

Kataruchak was informed that in some districts of the Malwa region, arrivals have been slightly lower, but millers are cooperating with the government. As arrivals gain momentum, procurement is expected to speed up. Out of the total 5,037 mills, 3,297 have applied for registration, and 2,670 mills have been allotted.

Storage and Transportation Issues

Punjab has managed to move only 7 lakh tonnes of the roughly 124 lakh tonnes of milled rice in its government godowns, leaving very little space for this years milled rice. Arhtiyas (commission agents) are demanding a compensation of 2.5% on crop purchases, as opposed to the current fixed remuneration of Rs 46 per quintal. Mandi laborers are also seeking higher wages, comparable to their counterparts in Haryana. Protests by these groups have further stalled the procurement process.

Government Response and Farmer Concerns

The Punjab government reported that the season was delayed by one week, but approximately 38.41 Lakh Metric Tonnes (LMT) of paddy have arrived in the mandis, with a daily arrival of 4.88 LMT. The total lifting has been 10.25 LMT, with daily lifting reaching 2 LMT. More than Rs. 5600 crore have been credited to farmers accounts. Last year, with a similar arrival of 38 LMT, the lifting figure was around 10 LMT, with daily lifting at 1.34 LMT and payments at Rs. 5066 crores.

Harvest Delays and Economic Impact

According to an Indian Express report, only 22% of the paddy crop has been harvested so far, roughly 20% less than last year. Farmers are deliberately slowing down the harvest process due to the lack of storage space in the mandis. They hope this will mitigate the risk of distress sales caused by grain spoiling in poor storage conditions. However, the longer paddy stands in the field, the greater the risk of weight loss and quality deterioration, leading to lower prices. Persistent delays in paddy procurement could result in significant economic distress for farmers.

With the winter wheat crop typically sown in November, delays in harvesting paddy also threaten to disrupt the states agricultural cycle, potentially causing further damage to Punjabs agriculture sector.