Punjab is projected to experience a decline in rice production following floods that devastated the paddy crop across approximately 200,000 hectares, according to a senior state official. Despite this setback, yields in unaffected areas are anticipated to be higher, he noted. Last year, Punjab produced 14.36 million tonnes (mt) of rice, including Basmati.
Official sources indicate that a larger area of non-basmati crops has been impacted as these crops are typically grown near rivers, where the flooding effects were more severe. The state government has already requested central assistance to prepare fields for the upcoming rabi season, forecasting no harvest from affected lands.
The Centre aims to procure 46.35 mt from the current kharif season yield nationally, which is set to start in October. Punjab’s procurement is critical, as the state is the largest contributor of rice in the country.
In terms of profitability, the government procured roughly 47.4 mt of rice during the kharif 2024 season against a target of 51.16 mt. Punjab contributed 11.61 mt to this total, while other leading states like Uttar Pradesh, West Bengal, Chhattisgarh, and Madhya Pradesh contributed significantly less, at 3.87 mt, 1.99 mt, 7.8 mt, and 2.92 mt, respectively.
As of September 5, the paddy cultivation area in Punjab was recorded at 3.249 million hectares, showing a slight increase from 3.244 million hectares the previous year, within an overall crop area of 3.552 million hectares. Many farmers remain focused on paddy, particularly Basmati, an aromatic rice variety recognized for its Geographical Indications.
Despite ongoing discussions from the Centre regarding crop diversification due to dwindling groundwater resources, state officials assert that farmers are likely to continue with paddy cultivation as it remains the most lucrative crop. The minimum support price (MSP) system guarantees full procurement, incentivizing this choice.
“Punjab farmers will shift to other crops if any government policy can ensure equivalent profits,” commented a state government official. Currently, farmers receive Rs 17,000 per hectare for diversifying crops, while average yields in Punjab are reported at 44.28 quintals per hectare. Selling paddy yields over Rs 1 lakh per hectare at the MSP of Rs 2,320 per quintal.
However, the Centre has made efforts to reduce rice procurement due to challenges in managing surplus stock after fulfilling food security and welfare program needs, averaging around 41 mt annually.
As of September 1, government stocks managed by the Food Corporation of India (FCI) stood at 36.91 mt, in addition to 16.90 mt of paddy—equating to 11.32 mt of rice—bringing total holdings to 48.23 mt, surpassing the annual requirement.
