OpIndia Exclusive: RTI reveals Punjab biggest beneficiary in central govt's procurement of wheat and paddy, MSP increased every year since 2014

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OpIndia Exclusive: RTI reveals Punjab biggest beneficiary in central govt's procurement of wheat and paddy, MSP increased every year since 2014

In reply to OpIndia’s RTI, it has been revealed that since the 2013-14 financial year (FY), Punjab has been the biggest beneficiary in the central government’s procurement of wheat and paddy. Furthermore, the central government, via the Food Corporation of India (FCI), has increased the procurement of wheat from Punjab every year during that period. Speaking about MSP, the central government paid Rs 1,350 per quintal of wheat in 2013-14, which increased to 2015 in 2022-23.

Speaking about paddy procurement, Punjab remained the top beneficiary. Data suggests that during the financial year 2013-14, MSP was Rs 1,345 per quintal, which increased to Rs 2,060 per quintal in the financial year 2022-23.

Top beneficiaries of wheat procurement

As per the data provided by the procurement department of FCI, Since FY 2013-14 till date, Punjab has remained the top beneficiary except for FY 2020-21. Data shows that 108.95 lakh metric tons (LMT) of wheat was procured from Punjab in 2013-14. The central government paid Rs 14,708.25 crores (MSP @ Rs 1,350 per quintal) against the procurement. In FY 2014-15, MSP was increased to Rs 1,400, and 116.44 LMT wheat was procured.

In FY 2015-16, 103.44 LMT wheat was procured, and Rs 14,998.8 crores (MSP @ Rs 1,450 per quintal) were paid. In FY 2016-17, 106.49 LMT wheat was procured, and Rs 16,239.73 crores (MSP @ Rs 1,525 per quintal) were paid. In FY 2017-18, 117.06 LMT wheat was procured, and Rs 19,022.25 crores (MSP @ Rs 1,625 per quintal) were paid.

In FY 2018-19, 126.92 LMT wheat was procured, and Rs 22020.62 crores (MSP @ Rs 1,735 per quintal) were paid. In FY 2019-20, 129.12 LMT wheat was procured, and Rs 23,758.08 crores (MSP @ Rs 1,840 per quintal) were paid. In FY 2020-21, 127.14 LMT wheat was procured, and Rs 24,474.45 crores (MSP @ Rs 1,925 per quintal) were paid. In FY 2021-22, 132.22 LMT wheat was procured, and Rs 26,113.45 crores (MSP @ Rs 1,975 per quintal) were paid. In FY 2022-23, 96 LMT wheat was procured, and Rs 19,434.69 crores (MSP @ Rs 2,015 per quintal) were paid. Only FY 2015-16 and FY 2020-21 saw a slight drop in procurement. MSP was increased every year without fail.

*The financial year 2022-23 (ongoing) data is incomplete.

If we talk about the percentage share in total procurement, 43% of total procured wheat in FY 2013-14 came from Punjab. Simultaneously, in FY 2014-15 41.39%, FY 2015-16 36.82%, FY 2016-17 69.89%, FY 2017-18 37.97%, FY 2018-19 35.45%, FY 2019-20 37.82%, FY 2020-21 32.60%, FY 2021-22 30.50% and FY 2022-23 51.32% of wheat came from Punjab.

Madhya Pradesh and Haryana were the other two states that benefited most from central wheat procurement. Only in FY 2020-21, Madhya Pradesh was the most benefitted state from the central procurement. In that year, while 129.42 LMT of wheat was procured from Madhya Pradesh, 127.14 LMT of wheat was procured from Punjab. Otherwise, Punjab remained the biggest beneficiary throughout.

Year-wise wheat procurement from Madhya Pradesh.

Year-wise wheat procurement from Haryana.

Top beneficiaries of paddy procurement

As per the data provided by the procurement department of FCI, Since FY 2013-14 till date, Punjab has remained the top beneficiary. Data shows that 120.98 lakh metric tons (LMT) of paddy was procured from Punjab in 2013-14. The central government paid Rs 16,272.08 crores (MSP Rs 1,345 per quintal) against the procurement. In FY 2014-15, MSP was increased to Rs 1,400, and 116.21 LMT paddy was procured. In FY 2015-16, 139.56 LMT paddy was procured, and Rs 20,236.20 crores (MSP Rs 1,450 per quintal) were paid. In FY 2016-17, 164.96 LMT paddy was procured, and Rs 24,908.96 crores (MSP Rs 1,510 per quintal) were paid. In FY 2017-18, 176.70 LMT paddy was procured, and Rs 28,095.30 crores (MSP Rs 1,590 per quintal) were paid.

In FY 2018-19, 169.16 LMT paddy was procured, and Rs 29.941.32 crores (MSP Rs 1,770 per quintal) were paid. In FY 2019-20, 162.33 LMT paddy was procured, and Rs 29,787.56 crores (MSP Rs 1,835 per quintal) were paid. In FY 2020-21, 202.82 LMT paddy was procured, and Rs 38292.42 crores (MSP Rs 1,888 per quintal) were paid. In FY 2021-22, 187.28 LMT paddy was procured, and Rs 36,706.88 crores (MSP Rs 1,960 per quintal) were paid. In FY 2022-23, 181.95 LMT paddy was procured, and Rs 37,481.70 crores (MSP Rs 2,060 per quintal) were paid.

*The financial year 2022-23 (ongoing) data might be incomplete.

If we talk about the percentage share in total procurement, 34% of the total procured paddy in FY 2013-14 came from Punjab. Simultaneously, in FY 2014-15 27.46%, FY 2015-16 27.35%, FY 2016-17 29.03%, FY 2017-18 31.09%, FY 2018-19 25.63%, FY 2019-20 21.06%, FY 2020-21 22.65%, FY 2021-22 21.85% and FY 2022-23 34.36% of paddy came from Punjab.

Chhattisgarh and Odisha were the other two states that benefited most from central paddy procurement.

State-wise detailed procurement.

UP and Tamil Nadu top beneficiaries in wheat and rice distribution respectively

Regarding wheat distribution, Uttar Pradesh and Madhya Pradesh, Rajasthan, Maharashtra, West Bengal, and Bihar were the top beneficiaries in FY 2014-15. On the other hand, in terms of rice distribution, Tamil Nadu and Uttar Pradesh, followed by Bihar, Andhra Pradesh, Karnataka and West Bengal, were the top beneficiaries in FY 2014-15. The trend continued to remain the same, and during Covid time, all states increased procurement substantially, with Uttar Pradesh taking the majority share followed by West Bengal, Rajasthan, Madhya Pradesh, and Maharashtra in wheat.

Sentiment has been created in the masses that the central government discriminates with Punjab in procuring wheat and paddy. However, the data shows that the state remained the top beneficiary throughout the time BJP has been in power at the centre.