Data | Farmers, new agriculture laws and government procurement

Data | Farmers in Punjab, Haryana depend the most on government procurement

Sea of protesters: Members of various farmers’ organisations gather in protest at the Punjab-Haryana border near Ambala on Sept. 25, 2020.   | Photo Credit: -

The two agriculture-related Bills passed in the Rajya Sabha on Sunday have been opposed by several farmer organisations for various reasons. The chief concern seems to be the fear of losing government procurement at the Minimum Support Price.

Farmers in Punjab and Haryana depend more on procurement by government agencies compared to their compatriots elsewhere in the country. This could explain why protests are concentrated in these States.

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Top beneficiaries

In the last two years, close to 45% of all the rice and wheat procured by government agencies came from just two States - Punjab (28.9%) and Haryana (15.9%). M.P. was a distant third at 10.4%.


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Most produce procured

In FY19, government agencies procured more than 75% of all the rice and wheat produced in Punjab and Haryana. Rice and wheat are the two major commodities procured by the government.


Dependence on rice and wheat

About 65% of Punjab's total farm output* in FY19 was only rice and wheat. For Haryana, it was 46%. These were the only States where the contribution of rice and wheat to total farm output exceeded 45% that year.


Revenue source

The Bills allow farmers to sell outside government-regulated markets. Such a move will hit the income that States earn through taxes and levies charged on commodities sold in such markets.




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Printable version | Jan 25, 2022 2:06:59 AM |

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