Punjab paddy procurement crosses 100 lakh tonnes; Rs 20,713 crore paid to farmers
By Rohit SharmaMarkets Analyst, Peepals Business
Representative image: congerdesign / Pixabay
Punjab's government agencies had bought 101.96 lakh tonnes of paddy by 29 October 2026 and paid Rs 20,713 crore to 4.71 lakh farmers, against a 180 lakh tonne target.
What Happened
Government agencies in Punjab had bought 101.96 lakh metric tonnes (LMT) of paddy in the state's grain markets (mandis) by 29 October 2026, and Rs 20,713.24 crore had been credited to the bank accounts of 4.71 lakh farmers, Punjab's Food, Civil Supplies and Consumer Affairs Minister Lal Chand Kataruchak said after a review meeting. He said the state would comfortably reach its procurement target of 180 LMT for the 2026-27 kharif marketing season, which began on 1 October.
Key Facts
- Procured so far: 101.96 lakh metric tonnes of paddy by government agencies, as of 29 October 2026.
- Payments: Rs 20,713.24 crore transferred to 4.71 lakh farmers.
- Season target: 180 LMT, so about 57% of the target had been bought within the first month.
- Lifting: about 70 LMT had been moved out of the mandis, according to the state's figures.
- Price: the minimum support price (MSP) for 2026-27 is Rs 2,461 a quintal for Grade A paddy and Rs 2,441 for common paddy.
- Funding: before the season, the Centre approved a cash credit limit of Rs 42,786 crore for Punjab's paddy purchase.
Why It Matters
Punjab is one of the main suppliers of rice to the central pool, the stock the Food Corporation of India keeps for the public distribution system and for food security. Each kharif season, state agencies buy farmers' paddy at the MSP, the price the Centre fixes so that farmers are protected from distress sales. How fast the crop is bought, and how fast farmers are paid, decides whether growers can clear their loans and buy seed and fertiliser for the next crop, mostly wheat.
The 100 LMT mark, reached within a month, suggests the buying is running at a steady pace. The payment figure works out to roughly Rs 44,000 on average per farmer so far, although actual payments vary widely with farm size. At the Grade A MSP, the paddy bought so far is worth roughly Rs 25,000 crore, so about four-fifths of its value had reached farmers' accounts by 29 October.
Lifting is the weak point that farmers' groups and arhtiyas (commission agents) watch most closely. Paddy that is bought but not lifted stays in the mandi, taking up space for new arrivals and exposing grain to rain and moisture damage. With about 70 LMT lifted against nearly 102 LMT bought, a large quantity was still waiting to be moved. In neighbouring Haryana, opposition leaders and farmers in districts such as Fatehabad have complained of slow lifting, portal errors and some farmers selling below the MSP, showing how quickly bottlenecks hurt prices.
| Measure | Figure | Note |
|---|---|---|
| Paddy bought | 101.96 LMT | As of 29 October 2026 |
| Season target | 180 LMT | About 57% reached |
| Paid to farmers | Rs 20,713.24 crore | To 4.71 lakh farmers |
| Lifted from mandis | About 70 LMT | Rest still in mandis |
| MSP, Grade A | Rs 2,461 a quintal | Common paddy Rs 2,441 |
Impact
Short-term: Farmers who have sold their crop are receiving money for rabi sowing. The pace of lifting in the coming days will decide whether mandis stay clear as arrivals continue in November.
Long-term: A smooth season supports farm incomes in Punjab and keeps the central pool stocked, but the state's heavy dependence on paddy remains linked to concerns over groundwater and stubble burning, which the government is also trying to manage.
Who is affected: Paddy farmers and commission agents in Punjab, rice millers, the Food Corporation of India, and consumers who depend on the public distribution system.
Key Takeaway
Punjab had bought nearly 102 lakh tonnes of paddy and paid Rs 20,713 crore to 4.71 lakh farmers by 29 October 2026, but lifting of about 70 lakh tonnes is the figure to watch.
Questions and Answers
How much paddy has Punjab procured in 2026-27?
Government agencies had procured 101.96 lakh metric tonnes of paddy in Punjab's mandis by 29 October 2026, according to Food and Civil Supplies Minister Lal Chand Kataruchak. The season target is 180 lakh metric tonnes.
How much have Punjab's paddy farmers been paid?
Rs 20,713.24 crore had been credited to the accounts of 4.71 lakh farmers by 29 October 2026.
What is the paddy MSP for 2026-27?
The minimum support price for the 2026-27 kharif marketing season is Rs 2,461 a quintal for Grade A paddy and Rs 2,441 a quintal for common paddy.
Why does lifting of paddy matter?
Lifting is the movement of bought paddy out of the mandis to storage or mills. If it is slow, mandis fill up, new arrivals are delayed and grain lying in the open can be damaged by rain or moisture. About 70 lakh tonnes had been lifted in Punjab by 29 October.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Rohit Sharma, Markets AnalystCovers Markets Watch and more for Peepals Business. All stories by Rohit Sharma
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Rohit Sharma is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
