Posted on April, 11, 2024 at 08:46 am
With depletion of stocks, the private purchase of wheat in Punjab, the biggest contributor to the centres’ procurement of grain, is expected to get a boost the current marketing season.
According to Vikas Garg, secretary, food and supplies, food companies, which used to buy smaller quantities earlier, could buy close to one million tonne (MT) of wheat in the state in the current marketing season (April-June).
“We anticipate purchases by private traders going to be in the range of 0.8 MT – 1 MT this season against only 0.45 MT purchased in the previous year,” Garg told FE.
In 2022-23 rabi marketing season (April-June), private traders procured 0.6 MT of wheat from farmers while the government agencies had lifted 9.64 MT in Punjab, which contributes highest to the central pool stock.
Usually private trade used to shun Punjab for the wheat purchase because of the higher taxation regime of 8.5% imposed for wheat procurement. This includes 3% market fee, 3% rural development cess and 2.5% arthia’s commission while most of the other key states impose procurement levies of around 3%.
Naresh Ghai, president of Punjab Flour Mills Association, said that processors who are still watching the government policy on stocking will soon make a decision to purchase from the mandis.
Source: MSN