Answer

India’s buffer stocks play a crucial role in ensuring food security during emergencies and maintaining stable supplies through the Public Distribution System (PDS). Punjab, a major contributor to the nation’s annual paddy and wheat production, has recently seen its output exceed available storage capacity, putting additional pressure on both local and national supply chains. Issues such as delays in procurement, overburdened storage spaces, and quality degradation are affecting the efficiency of buffer stocks. 

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Challenges Punjab Faces as a Significant Contributor to India’s Buffer Stocks

Surplus Storage

• Insufficient Storage Capacity: Punjab’s high output often exceeds the storage capacity of government godowns, leading to delays and wastage.
  For instance: Despite producing 124 lakh tonnes of rice, only 7 lakh tonnes reached government godowns in 2024 due to limited space.
• Dependence on Private Mills with Limited Storage: Government storage constraints push reliance on private millers, who also face storage limitations, causing bottlenecks in the supply chain.
  For instance: In 2024, reports highlighted private millers’ hesitation to accept paddy, citing concerns about inadequate storage in government godowns.
• Hybrid Paddy Varieties: Hybrid varieties have a lower Milling Output Ratio (OTR), causing additional storage needs as millers lose revenue with less rice yield per quintal.
  For example: Millers face losses of ₹300 per quintal due to hybrids with OTRs between 60-62%, below the required 67% for government delivery.
• Delayed Procurement: Labour strikes and demands from arthiyas for higher compensation delay procurement, increasing storage pressure.
  For example: Protests for higher arhtiya commissions and labour wages disrupted procurement in mandis, creating storage overflow.
• Quality Deterioration: Paddy left in fields during procurement delays faces quality degradation and weight loss, affecting rice quality and market value of buffer stocks. 

Management Challenges

• Logistical Delays: Lack of streamlined transport from mandis to storage facilities hampers timely management, causing overcrowding in mandis and delayed milling.
  For instance: In 2024, delayed transportation led to 90% of the harvested paddy remaining in mandis, creating logistical backlogs.
• Impact on Wheat Cultivation Due to Delayed Paddy Harvesting: Delays in paddy procurement compress the timeframe for sowing wheat, affecting crop cycles and buffer stock stability.
  For instance: Wheat stocks, at 23.78 million tonnes in public godowns, are at a record low, risking shortfalls if delays persist.
• Increased Stubble Burning: Limited time and short harvest-sowing interval between paddy harvest and wheat sowing increases stubble burning, contributing to air pollution and soil quality issues.
• Rising Costs: Insufficient storage infrastructure leads to temporary solutions that increase costs, stressing Punjab’s agricultural economy and government finances.
  For instance: Hiring temporary storage raised costs substantially in 2024, burdening local budgets and limiting resource availability.
• Dependence on MSP: Reliance on single- crop varieties like paddy and wheat incentivized by MSP restricts crop diversification, creating surplus management issues and environmental stress.
  For instance: Punjab’s reliance on MSP-backed crops like paddy and wheat has exacerbated storage needs, limiting efforts for sustainable diversification.

Suggested Measures to Address Storage and Management Issues

• Expanding Government Storage Capacity and Modernising Infrastructure: Investing in modern storage facilities, including silos and cold storage, will reduce bottlenecks in Punjab’s surplus storage.
  For instance: The Food Corporation of India (FCI) has launched initiatives to modernise godowns, ensuring safe storage for surplus paddy and wheat.
• Promoting Crop Diversification Through MSP Reform: Diversifying crop patterns with MSP for alternative crops, like pulses and oilseeds, can reduce over-reliance on paddy and wheat.
  For example: Offering MSP for less water-intensive crops like maize could encourage Punjab’s farmers to diversify, reducing buffer stock strains.
• Implementing Efficient Harvest and Procurement Processes: Streamlining the transportation and procurement timeline will reduce delays and minimise the risks of surplus accumulation in mandis.
  For example: Digital procurement portals are being piloted in Punjab to streamline payments and facilitate faster mandi clearances.
• Addressing Hybrid Crop Losses with Subsidies for Millers: Providing subsidies to millers for losses due to lower OTR of hybrids can prevent storage refusal and incentivize smoother procurement processes.
  For example: The Punjab government has proposed subsidies for losses incurred due to hybrids’ lower OTR, supporting milling operations.
• Strengthening Public-Private Partnerships: Collaborating with private storage providers can ease surplus management and enhance buffer stock capacities for national food security.
  For instance: Public-private initiatives like utilising rice mills for temporary storage are under consideration to address storage shortages.

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Punjab’s challenges in paddy and wheat storage highlight the urgent need for a comprehensive approach to optimise buffer stock efficiency. Expanding storage capacities, promoting crop diversification, and improving procurement timelines can enhance Punjab’s role in India’s food security. By modernising infrastructure and allocating resources effectively, Punjab can sustainably manage its agricultural output, reduce bottlenecks, and support long-term stability.

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