Global wheat shortage may not benefit farmers in Punjab

Parvesh Sharma

Sangrur, April 1

State farmers are unlikely to get any immediate benefit from the current global wheat shortage due to the Russia-Ukraine war as neither they have any arrangement to store wheat nor any big private purchaser has entered grain markets as yet.

Traders say states that are easily accessible from ports are likely to reap in benefits. Also, the taxation system of Punjab is discouraging as exporters will have to pay taxes — including 3 per cent market fee, 3 per cent rural development fund, 2.5 per cent commission — more than any other state.

“The war has created an opportunity for wheat export, but Punjab has not made any pro-export announcement. The high rate of taxation here is another deterrent. I have not seen a single big exporter showing interest in the state to date. Only flour mill owners are likely to purchase more in comparison to last year at slightly higher rates,” said Ravinder Singh Cheema, president, Arhtiya Association Punjab.

He added he did not expect any major fall in the arrivals in grain markets. Some farmers said even though they had heard about the global wheat shortage, they did not have required infrastructure to store their stock.

“We cannot store our wheat even for a month and will have to sell it immediately after harvest,” said Sulakhan Singh, a farmer from Mangwal village.

BKU (Dakaunda) general secretary Jagmohan Singh said: “The state and central governments should help farmers in making arrangements to store their wheat so that they could sell it at a higher rate later. We plan to launch an agitation if the government fails to help farmers.”