Traders are fetching paddy from UP, selling it in Punjab mandis

By Gitanjali Mangal -- October 18, 2020 1:11 pm

Punjab and its farmers are facing major losses since paddy is costing poor rates in Uttar Pradesh, and local traders and rice millers are purchasing it from that state to make quick money.

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The authorities have done nothing to stop this practice. Farmers in Muktsar, Faridkot and Patiala claim to have intercepted 15 trucks carrying paddy from UP in the past few days.

Nirmal Singh, secretary, Bharti Kisan Union (Sidhupur), Muktsar district, said, “A number of traders are buying paddy from other states. However, this is illegal as paddy grown in Punjab alone can be sold at the local mandis. Also, the buyer has to pay a fee to the market committee on every purchase. This is a clearly a case of tax evasion.”

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He also said that there was a huge gap between the MSP in Punjab (Rs 1,888/ quintal) and that in states like UP, Bihar and Rajasthan.

“Farmers in these states are selling their crop to Punjab traders at Rs 900-1,000 per quintal. After paying the freight charges (Rs 150-160/ quintal), it costs the traders Rs 1,150 per quintal. This means they make a profit of nearly Rs 700/quintal.” He added.


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Nirmal Singh mentioned that this “bogus sale” must be stopped as it could hurt the Punjab farmers, who would be unable to sell the entire produce because of the glut. Rice mill owner Ram Pal too wanted a check on the practice. He claimed the paddy from other states was of poor quality with a high moisture content.

-PTC News

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