Chandigarh, April 10: Facing a looming wheat glut, Punjab is scrambling to create additional storage as godowns remain congested with leftover rice from previous procurement seasons. Despite the Centre moving out 40 lakh metric tonnes (LMT) of rice from the state’s godowns, officials said it falls short of clearing space for the 124 LMT of wheat expected to arrive during the ongoing rabi procurement season.
“By the end of April, we expect to have around 126 LMT of rice still lying in the godowns, which will leave us with only 35 LMT of space for incoming wheat,” said B Srinivasan, General Manager of the Food Corporation of India (FCI), Punjab region.
At present, total storage capacity in the state remains unchanged from last year — 140 LMT with the FCI and 35 LMT with state food procurement agencies. Of this, 136 LMT of rice procured in 2023 and 2024 is still stocked. Srinivasan said 20 trains are currently transporting rice daily to other states, and another 10 LMT is expected to be moved out by the end of the month.
“Movement of rice has picked up, with exports allowed and rice also being sold to ethanol distilleries. Already, 39.42 LMT of rice and 40.59 LMT of wheat from earlier years have been shifted out,” he noted.
However, nearly 70 LMT of the wheat expected this season will need to be stored in open spaces under the covered and plinth (CAP) method. The state also faces a shortage of wooden crates, further complicating the storage crisis.
Construction of 31 LMT of additional storage capacity — approved earlier — has not yet begun. “We’re going ahead with creating another 15 LMT of space, on top of the already approved capacity,” Srinivasan mentioned.
In an interim solution, the state is also considering using defunct spaces like the closed sugar mill at Sheron in Tarn Taran to store grains.
The government plans to lift another 20 LMT of wheat directly from grain markets for dispatch to other states. Combined with the 70 LMT in CAP storage and 35 LMT in godowns, this is expected to handle the overall volume, albeit under logistical strain.
According to Srinivasan, 14 LMT of godown space will be reserved for rice deliveries from millers, which now extend into July — beyond the typical March-end deadline. “This delay is solely due to lack of storage space,” he said.
So far, 2,035 metric tonnes (MT) of wheat have arrived in Punjab mandis. Of this, 1,351 MT has been procured — 936 MT by the state and 415 MT by private traders.
Officials said procurement activity is expected to accelerate from next week as arrivals rise sharply in grain markets across the state.
