Agriculture reforms
- Wheat procured by GOI for 2019-20 Rabi Marketing Season : 129.12 Lakh Metric Ton
- Middleman commission per quintal (100 kg) - Rs 46.
- Potential commission (if entire of above Qty is procured through mandis) - Rs 590+ Crore! (in one season)😮
Comments?
- BTW, the commission as per APMC Act is 2.5% of the MSP but the GOI has been giving a flat rate of Rs 46 per 100 Kg.
- Capt Amrinder sahab was batting for Arthiyas or commission agents even in July 2020 and asking for 2.5% commission for them.
thehindu.com/news/national/…
1) Wheat procured in 2020-21: 127.14 Lakh MT
2) MSP - Rs 1,925 per 100 kg.
3) Commission potential for middlemen at 2.5% of MSP (if whole QTY procured at Mandi) - Rs 612 Crore.
4) Potential commission earned at Rs 46 per 100 Kg - Rs 585 Cr only!
4-graphs which explain Punjab agitation.
G1 - Share of Wheat production in India
G2 - Share of Wheat procurement by GOI
- Punjab produces 17.18% of wheat in India but its share of GOI procurement is more than double at 38.04%
- Same goes for Haryana
- And now, look at UP
+
G3 - Share of rice production in India
G4 - Share of rice procurement by GOI
- Punjab produces 10.9% of rice in India but its share is 26.8% of total procurement by GOI.
- Look at WB in terms of production share versus procurement.
+
+
- In many states, share of GOI procurement is multiple times higher than share of pan-India production.
- But this is most pronounced in Punjab and Haryana.
- See attached graph
- In case of Punjab and Haryana, rice procurement over last 5-years is 2.44 and 2.28 times their +
+ share of production in India.
- UK also has a high share but the underlying quantity of rice produced and bought is very small relative to Punjab or other states.
- Studies have recommended that Punjab and Haryana should actually not be growing rice+
+ because of its impact on ground-water table.
- BTW, Madhya Pradesh has had a bumper wheat crop this years, and hence, its share in procurement has gone up this year (33.19%)
- Otherwise, last 4-year average of its share in wheat procurement is only 19.84%.
- Long story short +
+ western India has better procurement infrastructure, it has access to ground-water recharged by canals, and couple that with free electricity, it can produce rice.
- Which is water intensive & can't be otherwise sustained unlike Eastern India where monsoon permits its growth.
+
+ Without MSP, Punjab and Haryana cannot sustain their rice crop as it is not consumed in-house.
- Similarly, w/o MSP, wheat production will also suffer from same issue.
- If GOI does not purchase it, where will they sell their produce?
(Do share you comments)
And here's the reality with supporting documents by Haryana government. Do read the whole thread.
Irrespective of the merit of their demands, the last thing which Punjab farmers need is these people to mix amongst them.
I've been quite a vocal supporter for Punjab CM. And while I understand him playing politics over farms bills, I did not expect the level to which he's stooped. Not to mention his condescending attitude towards Haryana CM.
- One major pain point is that Punjab will loose this lion's share of selling to central pool and miss the MSP gravy train.
- As for soldiers, let's abolish single class regiments, have all India, all class mixed regiments and reduce this burden on Sikhs.
- What say?
This faux superiority complex as seen in previous tweet, is exactly what a farmer's protest does not need. Please stick to your demands and don't bring this us-versus-them narrative. Keep these people away from your protest.
Again, need to get off this high horse. On the contrary, the agitation is that Modi will stop buying from Punjab in earlier quantities and at MSP rates. Guess, who's dependent on whom?

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