Punjab’s wheat growers are unlikely to find many private traders in the ongoing Rabi marketing season, with the state roller flour mills deciding to buy crop from Uttar Pradesh where it is available at lower rates.
The main intention of buying crop from Uttar Pradesh at lower rates is to compete with the cheap wheat-based products being dumped by UP-based flour mills across Punjab.
“We are not going to buy wheat for our consumption from Punjab this year because it is cheaper to purchase wheat from UP than buying it from Punjab,” said Punjab roller flour mill association president Naresh Ghai on Monday.
According to wheat-based product makers, wheat prices in Uttar Pradesh rules at Rs 1,050 to Rs 1,085 a quintal as crop is bought below the minimum support price of Rs 1,285 a quintal. “Wheat procurement in UP is not organised the way it is in Punjab.
Therefore, the crop rates are prevailing lower in UP,” he claimed. Ghai said even after adding freight cost, local taxes and cartage, wheat will cost them Rs 1,265 per quintal from UP in comparison to paying Rs 1,410 per quintal for buying wheat in Punjab.
“When we can save Rs 145 per quintal after procuring wheat from several areas like Bareilley, Shahjahanpur, Hardoi in UP, then why will we will buy crop from Punjab?” he said.
High taxes and levies also made wheat costlier in Punjab as the state charges about 14.5 per cent in taxes, including VAT, commission, market fee, cess against just six per cent of taxes levied in UP. A total of 78 flour mills in Punjab require over seven lakh tonne of wheat for their annual requirement.
Punjab-based mill owners are incensed over flooding of wheat-based products like maida at 20 to 50 per cent cheaper rates compared to rates prevailing in Punjab.