The Food Corporation of India (FCI) and state agencies have procured 85.41 lakh metric tonnes (LMTs) of paddy in Punjab during the ongoing kharif marketing season 2024-2025 as of November 2, according to a statement issued by the Union Food Ministry on Sunday.

The Centre has already disbursed Rs 19,800 crore benefiting 4 lakh farmers in Punjab with the procurement of paddy in full swing in the state. The state agencies also procure paddies on behalf of the Centre as they have warehousing facilities.

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“As of 2nd November 2024, a total quantity of 90.69 lakh metric tonnes (LMT) of paddy has arrived in the Punjab mandis out of which 85.41 LMT have been procured by state agencies and FCI. The paddy is being purchased at MSP of Rs 2320 per quintal as decided by Government of India for Grade ‘A’ paddy and the total paddy purchased by Government till date in the ongoing kharif marketing season,” the official statement said.

Further, 4,640 millers have applied for shelling of paddy and 4,132 millers have already been allotted work by the Punjab government.

The procurement of paddy for the 2024-25 marketing season has commenced in Punjab from October 1 and 2,927 designated mandis and temporary yards are operational throughout the state for smooth procurement from the farmers of Punjab.

The Central government has fixed an estimated target of 185 LMT for paddy procurement for the ongoing kharif marketing season 2024-25 which will continue up to November 30, the statement said.

Though the procurement commenced a bit late due to heavy rains in September and high moisture content in paddy, it is back on track and has picked up in full swing now, the statement added.

The MSP is the price fixed by the Centre at which it buys foodgrains from the farmers to ensure that they get a profitable return and do not have to resort to distress sales.

The price is announced before the sowing season in order to enable farmers to choose their cropping pattern.

Last month, the Union Cabinet announced an increase of up to 7 per cent in the Minimum Support Prices (MSPs) of rabi crops such as wheat that are being sown now for the 2025-26 marketing season that will start from April.

The support price of wheat has been hiked by 6.59 per cent and fixed at Rs 2,425 per quintal from Rs 2,275 per quintal in the marketing season 2024-25.