A Study on Staggered Public Procurement of Wheat in Punjab

Punjab is the second largest producer of wheat after Uttar Pradesh in the country but the state’s share in contribution to the central pool is maximum. The study has brought out that the marketed surplus of wheat was about 84 per cent with the selected farmers and about 96 per cent of the produce was sold during the post-harvest period. The study has revealed that per holding debt of the selected farmers, on an average, was Rs 1.71 lakh. About 99 per cent of wheat arrival was during the post-harvest period, from April to June in 2007-08. Wheat price in the months of April and May was almost equal to the MSP from 1997-98 to 2007- 08. During the lean period, there was a mixed scenario of the price. All this depended on the forces of the demand and supply. A vast majority (about 76 %) of the selected farmers have not been found in the favour of staggered public procurement of wheat. The public procurement agencies have their own practical limitations to operate in the grain markets throughout the year. Such a step will add to the procurement cost and the burden of food subsidy to be borne by the Union Government will increase further. Already it is Rs 56002 crore in 2009-10. Keeping in view the scenario at the farm and market levels, it is not feasible to have staggered public procurement of wheat in Punjab. Theoretically, it looks an attractive proposal but from practical point of view, it is not much feasible.


Issue Date:
2010-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/97013
Published in:
Agricultural Economics Research Review, Volume 23, Number 2
Page range:
325-334
Total Pages:
10




 Record created 2017-04-01, last modified 2017-08-25

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