Record wheat purchase by pvt traders in grain markets

The ongoing rabi marketing season has seen an unprecedented purchase of wheat by private players in the mandis of Punjab. Over 10 per cent of the wheat purchased so far has been bought by private players.

According to the data available with The Tribune, of the 46.49 lakh metric tonnes (LMT) of wheat purchased till date, 4. 68 LMT has been purchased by these private traders. They are paying between Rs 2,630- Rs 2,640 per quintal. The MSP of wheat is Rs 2,425 per quintal.

It is learnt that the maximum private purchase this year has been recorded in Sangrur (1,29,773 MT), Ludhiana (86,456 MT), Faridkot (57,637 MT), Fazilka (28,144 MT) and Bathinda (24,352 MT).

The participation of private traders in wheat purchase has always been negligible, rarely crossing 3 per cent.

Commission agents in various mandis have told The Tribune that the local flour mills are buying the wheat from here this time round, rather than going to mandis in the neighbouring states of Uttar Pradesh and Rajasthan to buy the grains. Earlier, the Punjab-based flour mills would buy wheat from Uttar Pradesh at rates much below the MSP. But ever since the farmers there have started selling wheat at the MSP, the landing cost of wheat from UP is higher because of freight than the wheat they buy from mandis here.

Also, with the Rajasthan Government announcing an MSP of Rs 150 per quintal on wheat, private traders are giving preference to Punjab for buying wheat. In Rajpura Mandi, Mahinder Krishan Chand Arora, a commission agent, said several cattle feed manufacturers like De Heus India were also buying wheat from the mandis here. Some wheat seed companies too are buying wheat, while many commission agents and farmers, having sufficient storage capacity, are also holding back wheat they buy at the MSP now, to be sold on profit in a few months.

The state government expects the higher purchase by private traders to continue through the wheat procurement season. Privately, officials involved in wheat procurement are saying that this year, the government purchase target of 124 LMT could fall short by 4 LMT, considering the higher private purchase.

Storage ease for govt

The higher purchase of wheat by private traders has eased the storage woes of the state government, which was struggling to arrange for wooden crates to stack the bags of wheat purchased now.

As many as 19 lakh crates are required for storing this year’s wheat. The government will be using 11.50 lakh crates bought in 2021.

For the remaining requirement of 7.50 lakh crates, four lakh crates have been arranged on lease (@ Rs 7 per crate) from rice shellers, and 3.50 lakh old broken crates have been repaired @ Rs 84 per crate. The state government has also floated a tender to purchase

1 lakh crates.

Punjab