Ive already quoted data on this from the FCI site. There are two entities who procure - the FCI and the state government. The latter means the APMCs . Here is the data:ManSingh wrote:It is a million dollar question if APMC is going to be shut down or not. One of the proposals submitted by Punjab government as a response to the farm bills was to ask the central government to pass a "sunset clause" law under which it will pay Punjab government for procurement for next 10 years. This practice is also known as procurement at MSP.srin wrote:Curious on one question: Is the APMC going to be shut down ? Why can't the farmers who like the APMC so much sell there instead of availing the new freedoms ?
It has been turned down, so it basically implies that at some point APMC's could be wound down, probably in less than 10 years from now. This is the primary reason for the demand to ask MSP to be codified into a law.
https://fci.gov.in/app/webroot/upload/P ... eat_50.pdf
While this chart makes it look like Punjab is the dominant wheat producer, this is not true. In any given year it ranks between 2 and 4:
https://www.mapsofindia.com/top-ten/ind ... wheat.html
Punjab (and Haryana) is instead distinguished by the APMC having a dominant stake in offtake. Compare that to neighboring UP, which is the top producer and yet only about 3.5MT gets procured by the state, with the rest being open market.
The center should not pay the Punjab government for MSP support. The reason is simple - it is an arbitrage option being demanded by one state. The Punjab government gets a 15% cut of the procurement price, and a high price backed by the central government means a high cut.
Punjab is the only major wheat producing state that uses APMCs for almost all of its procurement. That needs to end. Given that it produces less than UP, its APMC should not have to procure so much either. In other words cut Punjab APMC procurement by 80-90% to align with UP or Rajasthan.
It is not reasonable for Punjab to demand any sunset clause to help end its state APMC monopoly . That is a creature of its own state politics, where actual farmers are outnumbered 200:1 by middlemen.