Punjab Congress alleges ₹4,000 crore scam in paddy procurement by AAP govt

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Punjab Congress alleges ₹4,000 crore scam in paddy procurement by AAP govt

Synopsis

Punjab Congress chief Pargat Singh visited a Jalandhar grain market and alleged a ₹4,000 crore scam in the AAP government's paddy procurement operations, including a purported ₹200-per-gunny-bag deal with rice millers. With Punjab's 18-million-metric-ton procurement target unmet and farmers reportedly stranded in mandis, the allegations put the Bhagwant Mann government under serious political pressure during the peak paddy season.

Key Takeaways

Punjab Pradesh Congress Committee President Pargat Singh visited the grain market at Kukkar Pind village, Jalandhar on 24 October .
Singh alleged a ₹4,000 crore scam in paddy procurement by the AAP government in Punjab.
A purported deal of ₹200 per gunny bag involving rice millers and private agencies was alleged.
Punjab's paddy procurement target stands at approximately 18 million metric tons , reportedly unmet at the time of the visit.
The government allegedly awarded a contract to a single favoured rice mill, raising concerns over transparency.
The AAP government had not formally responded to the allegations at the time of reporting.

Punjab Pradesh Congress Committee President Pargat Singh on Saturday, 24 October visited the grain market at Kukkar Pind village in Jalandhar to inspect the ground-level status of paddy procurement and lifting operations. Following his visit, Singh levelled serious allegations against the Aam Aadmi Party (AAP) government in Punjab, accusing it of orchestrating a scam of approximately ₹4,000 crore in the paddy procurement process.

Key Allegations Against the AAP Government

Singh alleged that the state government had entered into a purported deal of ₹200 per gunny bag involving rice millers and private agencies — an arrangement he described as financially irregular and detrimental to farmers. He further alleged that instead of ensuring an organised and transparent lifting process, the government had awarded a contract to a single favoured rice mill, creating scope for arbitrary practices and potential misuse of public funds.

He questioned why the government had chosen to rely on a sole agency when the scale of procurement — with a state-wide target of approximately 18 million metric tons — demanded robust and distributed arrangements. Critics argue that concentrating procurement contracts in a single entity raises serious accountability concerns.

Farmers Left Stranded in Mandis

According to Singh, the government's failure to undertake timely and effective planning had left farmers struggling in the mandis across Punjab. He noted a significant gap between the government's official claims and the ground reality witnessed during his visit. Despite paddy arriving at the mandis, adequate arrangements for procurement and lifting had reportedly not been made, forcing farmers to bear the consequences of administrative inaction.

Singh also expressed concern that the existing arrangements could lead to confrontations between farmers and commission agents, with farmers being unnecessarily harassed in their efforts to sell their produce. During the visit, he contacted officials of the Food and Supplies Department over the phone and reprimanded them over delays in procurement and lifting.

Procurement Suspension Row

Responding to questions about reports of paddy procurement being suspended in parts of the state, Singh said the move was unjustifiable given that Punjab's procurement target of approximately 18 million metric tons had not yet been achieved. He questioned how the government could direct farmers to halt selling their produce when the mandated target remained unmet, calling the situation an exposure of the government's lack of foresight and planning capacity.

Congress Demands Immediate Action

Singh demanded that the AAP government take immediate and effective measures to ensure the timely procurement of farmers' produce and its prompt lifting from the mandis. This comes amid a broader pattern of opposition scrutiny over Punjab's agricultural supply chain management, with the paddy procurement season being a politically sensitive period for any state government given the centrality of farming communities to Punjab's electorate.

The AAP government in Punjab is yet to formally respond to the specific allegations of a ₹4,000 crore scam or the claimed ₹200 per gunny bag deal. How the government addresses these charges in the coming days will be closely watched by farmer groups and political observers alike.

Point of View

000 crore figure is unverified and the allegation is currently one-sided, but the specificity of the ₹200-per-gunny-bag claim and the single-mill contract will compel the AAP government to respond with evidence rather than denial. What is less reported is the structural issue: Punjab's paddy procurement machinery has historically struggled with lifting delays regardless of which party is in power, making it both a genuine governance challenge and a perennial political flashpoint. The real accountability test will be whether any independent audit or legislative committee examines the procurement contracts this season.
NationPress
24 Oct 2026

Frequently Asked Questions

What is the ₹4,000 crore paddy procurement scam alleged by Punjab Congress?
Punjab Pradesh Congress Committee President Pargat Singh has alleged that the AAP government in Punjab engineered a scam worth approximately ₹4,000 crore in the paddy procurement process. He specifically claimed a purported deal of ₹200 per gunny bag was struck involving rice millers and private agencies, and that a contract was awarded to a single favoured rice mill rather than ensuring distributed and transparent procurement.
Where did Pargat Singh make these allegations?
Pargat Singh made the allegations after visiting the grain market at Kukkar Pind village in Jalandhar on 24 October. The visit was intended to assess the ground-level status of paddy procurement and lifting operations in the region.
What is Punjab's paddy procurement target this season?
According to Pargat Singh, Punjab's paddy procurement target for the current season is approximately 18 million metric tons. He alleged that the government was directing farmers to halt selling their produce even though this target had not yet been achieved.
How are farmers affected by the alleged procurement delays?
Farmers have reportedly been left stranded in mandis across Punjab due to inadequate arrangements for procurement and lifting. Singh alleged that the situation could lead to confrontations between farmers and commission agents, with farmers being unnecessarily harassed while trying to sell their paddy.
Has the AAP government responded to the allegations?
The AAP government in Punjab had not formally responded to the specific allegations of a ₹4,000 crore scam or the claimed ₹200-per-gunny-bag deal at the time of reporting. Food and Supplies Department officials were reportedly reprimanded by Singh over the phone during his mandi visit.
Nation Press
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