Wheat Storage Cost Leads to Cut in Commissions in Panjab; Levy on Industry

The Food Corporation of India (FCI) has reduced by half the commission paid to middlemen for storing wheat. A senior official, speaking on condition of anonymity, explained the reason, 'We are left with no choice but to first store wheat in gunny bags at godowns before transferring it to silos. This additional handling adds around USD 1.16 (INR 100) per quintal.' With a total silo storage capacity of about 1M tonnes, the cost hike could amount to nearly USD 11.6M. FCI is recovering part of this cost from middlemen. The reduction in commission has led to opposition from middlemen and farmer unions. Meanwhile, the Panjab government which recently announced single clearance window for new industry has also imposed a levy of INR 2 per kilovolt-ampere hour (kVAh, unit)  for running their factories between 6 pm and 10 pm during the paddy season from 16 Jun to 15 Oct when farmers need dedicated power supply for at least eight hours a day. Though the notification was issued on 29 Mar, industrialists claim it was circulated a day before it was to be implemented. Condemning the move, industrialists said the authorities intentionally kept the notification in hiding. The power cost per unit for industrial consumers is around INR 6.80, with an additional 20% duty. This makes the landing cost of power to industry INR 8.16 per unit. In other news, a recent field study has shown that combining Indian Farmers Fertilisers Cooperative limited (IFFCO)’s Nano Urea Plus and Nano Di-ammonium Phosphate (DAP) with traditional granules type urea can help farmers save 20% nitrogen and 25% phosphorus, without compromising on crop yield. The test was conducted on potato crops which demand high doses of both Urea and DAP. If other crops also show such results, the findings point to a path forward for farmers looking to reduce the quantity of traditional fertilizers while protecting soil and water health (earlier coverage).