Empty granary: Punjab’s wheat stock hits lowest level, crisis looms

Punjab’s granaries are now almost empty. Once overflowing, the granaries have a lowest-ever stock of wheat at 16 lakh metric tonne (MT) at present and will further fall to 2 lakh MT by end of March, when the wheat procurement season begins in April.

According to sources, around 10 lakh MT is in the godowns of the state procurement agencies and the rest 6 lakh MT is with the Food Corporation of India (FCI). Usually around this time of the year, when the stocks are emptied to create space for the next season’s wheat, there is a stock of 40-50 lakh MT in the state godowns.

The total wheat procured in the country was 187.86 lakh MT in 2022-23 against the last financial year’s procurement of 433.44 lakh MT which is down by more than 50 per cent.   The reason wheat procurement across the country declined is due to the global wheat shortage following the ongoing Russia-Ukraine war and the extension of the Pradhan Mantri Garib Kalyan Anna Yojana.

In January last year, the state had an estimated 48 lakh MT of wheat stock while in 2021 it was 52 lakh MT. With the union government not releasing wheat under the Open Market Sale Scheme (OMSS), the wheat prices had touched `28 to 29 per kg last month and atta (flour) prices `35 per kg.

The wheat prices had increased by about Rs 5 per kg from Rs 23.50 per kg. To control the prices the government usually floats a tender in the month of September. Since the last four months and due to festive season as the demand of wheat was at an all time high across the country, the OMSS was not opened. The old wheat crop with the private traders was used which is now almost empty, thus the reason behind the skyrocketing price of wheat.

The central government opened up this scheme on January 26 till March 15 and in the first tender 2.77 lakh MT of wheat from Punjab was brought by private traders, said sources.   A senior state food and supplies department official pointed out that if this tender continues, the stocks will be down to about Rs 2 lakh MT.

Procurement down by 50%

• Around 10 lakh MT is in the godowns of the state procurement agencies and 6 lakh MT is with the Food Corporation of India (FCI).
• Total wheat procured in the country was 187.86 lakh MT in 2022-23 against the last financial year’s procurement of 433.44 lakh MT which is down by more than 50%

Reasons for decline

• Extension of the Pradhan Mantri Garib Kalyan Anna Yojana
• Global wheat shortages due to the ongoing Russia-Ukraine war
• Wheat procurement in the country

Tags: prices, wheat, government, Punjab, stock, granaries