1 October 2026 Punjab Khabarnama Bureau : Paddy procurement in Punjab has officially begun for the 2026-27 kharif marketing season, with the state government targeting the purchase of 180 lakh metric tonnes of paddy. However, the procurement process has started amid a severe shortage of storage space, raising concerns over the smooth movement, milling and storage of the new crop.
Government procurement agencies have started purchasing paddy from farmers from October 1. Paddy arrivals had already begun at several mandis before the official procurement date, as farmers started bringing their harvested crop to market yards.
The shortage of storage space remains one of the biggest challenges for the state this procurement season. Punjab is already holding a large quantity of foodgrains from previous procurement cycles, leaving limited space for the incoming paddy crop.
A substantial quantity of rice from earlier procurement seasons is still stored in warehouses and other storage facilities. Wheat stocks are also occupying space that could otherwise be used for handling the new paddy harvest. The slow movement of existing foodgrain stocks to consuming states has added to the pressure on Punjab’s storage infrastructure.
The state government has been seeking faster evacuation of old stocks so that sufficient space can be created for the fresh paddy crop. The issue is particularly important because Punjab is one of India’s major rice-producing states and handles a large volume of paddy during the kharif procurement season.
The procurement process involves several stages. Government agencies purchase paddy from farmers at designated procurement centres before the crop is sent to rice mills for custom milling. After milling, the rice is delivered to government agencies and becomes part of the Central Pool.
Any delay in one part of this chain can create pressure on the entire procurement system. If storage facilities and rice mills are already occupied with old stocks, accepting and processing fresh paddy could become difficult as arrivals increase.
To address the situation, the Punjab government has taken steps to keep the milling process moving. Changes have been made to the custom milling arrangements to provide greater flexibility to rice millers dealing with previous-season stocks.
Under the revised arrangements, millers meeting specified delivery requirements can receive fresh paddy allocations even if they have not completed the entire delivery of rice from their previous allocations. The move is aimed at preventing disruption in the procurement process and ensuring that fresh paddy can be moved for milling.
Punjab has a large area under paddy cultivation, and the state expects a significant harvest during the current season. The Centre has fixed a procurement target of 180 lakh metric tonnes for Punjab, while the state expects total paddy production to be higher.
The Minimum Support Price for common paddy has also been fixed for the current marketing season. Government procurement agencies are expected to purchase eligible produce from farmers at the announced support price, subject to prescribed quality requirements.
The state has made arrangements for funds and other logistics required for procurement. Gunny bags and other essential material are being arranged at procurement centres to facilitate the purchase and movement of the crop.
Officials have also been monitoring mandi arrangements to ensure that farmers do not face unnecessary delays while bringing their produce to procurement centres. The smooth functioning of mandis will be particularly important as arrivals increase during the peak harvesting period.
Farmers generally depend heavily on timely procurement because delays in lifting the crop can lead to congestion at mandis and create difficulties in managing harvested produce. Adequate storage and transportation arrangements are therefore essential for ensuring that procurement centres continue to function efficiently.
The existing storage shortage has also highlighted the broader challenge of managing foodgrain stocks in Punjab. The state plays a major role in national food security, but large quantities of grain remain stored within the state for extended periods when evacuation and distribution are delayed.
The Centre and state authorities will therefore need to coordinate closely to clear existing stocks and create additional space. Faster movement of rice and wheat to consuming states could help reduce pressure on warehouses, rice mills and mandi yards.
The storage issue is not limited to government warehouses. Rice mills and mandi yards are also dealing with stocks from previous procurement seasons. Clearing these stocks is important because rice mills are a key part of the paddy procurement and custom milling system.
The coming weeks will be crucial for Punjab’s procurement operations. Paddy arrivals are expected to increase as harvesting gathers pace, placing additional pressure on storage, transportation and milling facilities.
For farmers, the key concerns will remain timely procurement, payment and uninterrupted lifting of their produce. For the government, the immediate challenge will be to ensure that storage constraints do not disrupt the procurement cycle.
As the paddy procurement season gets underway, the efficient evacuation of old foodgrain stocks and faster movement of newly procured paddy will be critical. The success of the procurement operation will depend on coordination between government agencies, rice millers, transporters and other stakeholders.