As the harvest season is already underway in Punjab, Chief Minister Bhagwant Mann on Monday managed to get concessions from the Centre, addressing critical demands during a meeting with Union Food Minister Prahlad Joshi. The Centre agreed to adjust the procurement rate for dry paddy from 0.5 to one percent — a key request by the Punjab Government.
 
There was an assurance that 120 lakh metric tons (LMT) of rice would be cleared from Punjab’s storage by March 2025, allowing for smoother operations in the upcoming procurement cycle. The Chief Minister also raised demands related to transportation costs, milling space, restoration of commissions for commission agents (arhtiyas), and an increase in milling allowances, all of which were given favourable consideration by the Union Government.
 
During the meeting, Mann presented a comprehensive list of demands, emphasizing the urgent need for transportation provisions, reimbursement of additional transport costs, an increase in storage space, and the restoration of the driage rate (grain weight loss due to drying) from 0.5 to one percent. He also pressed for reconsideration of the Out-Turn Ratio (OTR) for hybrid paddy varieties and an increase in commission rates for arhtiyas from the current two percent to 2.5 percent of the Minimum Support Price (MSP). The Centre, in turn, committed to addressing most of these concerns, paving the way for a more efficient and farmer-friendly procurement process.
 
Chief among the demands met by the Centre was the adjustment in the driage rate for dry paddy procurement. Previously set at 0.5 percent, this reduction had been a point of contention for rice millers and farmers alike. Mann’s insistence that the rate be restored to one percent was grounded in concerns about the financial strain on rice millers, who have faced severe losses due to space shortages and extended milling seasons. The Centre agreed to Mann’s demand, committing to a detailed study on the driage rate by a team from IIT Kharagpur, with Punjab’s concerns being incorporated into the analysis. This restoration to one percent will allow millers to operate with fewer financial losses and enhance the overall efficiency of the procurement process.
 
Another major victory was the commitment to create additional storage space in Punjab by moving 120 LMT of rice outside the state by March 2025. This measure will alleviate the severe storage shortages that have hampered previous procurement cycles, where only seven LMT of storage space was available at the start of the season. Mann urged the Centre to liquidate 20 LMT of foodgrains per month, utilizing schemes like the Open Market Sale Scheme (OMSS) and ethanol allocations to ensure smooth operations in the state's mandis. The Centre’s agreement to this demand ensures that procurement will continue uninterrupted, avoiding bottlenecks that could otherwise lead to widespread farmer dissatisfaction.
 
A significant concern raised by the Chief Minister was the additional transportation costs incurred by rice millers when delivering rice to Food Corporation of India (FCI) depots located far from Punjab’s milling centers. In many cases, these depots are situated 50 to 100 kilometers away, with some even located outside the state. This distance adds a financial burden on the millers, which is not accounted for in the bilateral agreements between millers and the state procurement agencies (SPAs).
 
Mann successfully convinced the Centre to reimburse the extra transportation costs, ensuring that millers are fairly compensated for the logistical challenges they face during delivery.
 
The issue of milling capacity was also prominently featured in the discussions. With the rice milling season set to begin on November 15, Mann highlighted the need for increased milling space to handle the 185 LMT of paddy expected to be procured. He further requested that the Centre prioritize the movement of foodgrains to create additional space for the upcoming milling season. The Centre’s agreement to shift 120 LMT by March 2025 addresses this concern, offering much-needed relief to millers and farmers alike.
 
Mann also raised the long-standing demand for an increase in commissions for arhtiyas, who have been crucial in ensuring smooth procurement despite numerous challenges. The current commission, set at Rs 45.38 to Rs 46 per quintal, has not been revised since the 2019-20 procurement season. The Chief Minister called for a raise to Rs 58 per quintal, in line with the 2.5 percent commission stipulated by the Punjab Agriculture Produce Market Committee (APMC) Act. The Union Minister assured that this demand would be sympathetically considered in upcoming meetings, signaling a possible increase that would benefit arhtiyas across the state.
 
Furthermore, Mann raised concerns about the Out-Turn Ratio (OTR) for hybrid paddy varieties. The current OTR for Grade A paddy is set at 67 percent, but the Chief Minister pointed out that hybrid varieties, which are less water-intensive and have higher yields, do not meet this standard. He requested that the Centre send a team to reassess the OTR for these varieties, recognizing their importance in promoting sustainable farming practices in Punjab. The Union Minister praised Punjab’s efforts to promote less water-intensive crops, committing to continued support for such initiatives.
 
The outcome of the meeting has come as a relief to farmers and millers in Punjab, who were anxious about potential disruptions to the procurement process. Earlier, farmer leader Balbir Singh Rajewal had criticized the Punjab and Union Governments for failing to initiate crop procurement on time, warning of a potential agitation similar to the farmers' protests at the Delhi border if the government did not address their concerns. Rajewal’s warning underscored the tension in the mandis, where commission agents, farmers, and millers had expressed frustration over delayed procurement and inadequate government policies.
 
By securing key concessions from the Centre, Bhagwant Mann has managed to avert a potential crisis in the state's agricultural sector. His efforts to ensure smooth procurement operations, fair compensation for millers and arhtiyas, and support for hybrid crop varieties reflect a commitment to addressing the needs of Punjab’s farming community while balancing the broader demands of national food security.
 

•         Procurement rate for dry harvest increased from 0.5% to 1%
•         Centre to transport 120 LMT paddy out of Punjab by March 2025
•         Reimbursement for extra transportation costs of rice millers approved
•         Driage rate restoration to 1% of MSP under consideration
•         Central support for Punjab’s less water-consuming hybrid paddy varieties
•         Centre to consider increasing Arhtiyas’ commission to 2.5% of MSP