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Abstract
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.