As is evident from its introduction, the main activity of PUNSUP is procurement of wheat & paddy for Central Pool under Minimum Support Price (MSP) Scheme of Government of India. However, it is fully involved in Public Distribution System besides running commercial & distribution activities, briefed as under:
A) PROCUREMENT OF FOODGRAINS
i) Wheat & paddy
Being one of the State procuring agencies for procurement of wheat & paddy in the State of Punjab to contribute towards Central-pool, PUNSUP procures food-grains at minimum Support Price, as fixed by the Government of India. This is a direct service to the farming community in the State of Punjab. PUNSUP’s share is about 20% of the total procurement of wheat & paddy being procured by all the agencies.
After procuring the wheat, it is hygienically & scientifically stored uptil it is moved out to FCI as and when demand is raised. So far as paddy is concerned, after procurement, it is stored with the allotted rice millers, scattered throughout the State of Punjab, under joint custody, for custom milling. After milling, the rice so converted is delivered by the millers to FCI in PUNSUP’s account. During Rabi 2008-09, it has procured wheat to the extent of 23.71 Lac MTs as against 17.78 Lac MTs during previous year. Further, during kharif 2008-09, paddy to the extent of 27.16 Lac MTs has been procured as against 26.10 Lac MTs during the previous year.
ii) Storage accommodation
PUNSUP has its own covered and open storage to the extent of about 1.57 Lac MTs and the rest is hired from private parties as well from the warehousing corporations.
iii) Stock articles
For procurement of wheat & paddy, indents for gunnies are placed by the Directorate of Food & Supplies, Punjab with DGS&D, Government of India, on behalf of all the procuring agencies at the rate fixed by the Government of India from time to time.
For procurement of LDPE covers, PUNSUP is the nodal agency for making necessary arrangements for all the procuring agencies of the State. For this purpose tenders are floated usually twice in a year for the rate contract applicable for crop after crop.
So far as wooden crates are concerned, earlier these were fabricated at PUNSUP’s own saw-mills at Samrala, Kot-kapura and Garh Shanker. With the slow movement of stocks previously, the saw-mills were shut-down and now crates are being purchased from open market.
Further, proper planning is made for purchase of fumigants required for fumigation of wheat stocks so as to maintain the health position of wheat stocks procured.
B) COMMERCIAL & DISTRIBUTION
i) Public Distribution System
PUNSUP being a nodal agency for Public Distribution System (PDS) in the State of Punjab, distributes sugar, wheat, rice etc. at about 14000 Fair Price Shops (Depots) scattered throughout the State of Punjab, majority of which are situated in rural areas.
ii) Atta Dal Scheme
The job for distribution of wheat & pulses under the prestigious Atta Dal Scheme of the State has been assigned to PUNSUP, which is being run successfully since August, 2007. Under this scheme, wheat at the scale of 35 Kgs per family @ Rs.4/- per Kg. and pulses upto 4 Kgs. Per family @ Rs.20/- per Kg., are distributed amongst about 13 Lac families, every month.
iii) Sales outlets/Apna Bazaars
PUNSUP has a chain of 8 Nos. of retail sale out-lets/ Apna Bazaars in the State of Punjab at Chandigarh, Mohali, Ludhiana, Patiala, Ropar, Nangal, Hoshiarpur & Bathinda in order to cater to the daily use items like, pulses, vegetable oils, sugar, atta, tea, toiletries, confectionary etc. etc. at most competitive price.
iv) LPG Sales Outlets
PUNSUP has a chain of 8 Nos. of LPG distribution agencies in the State of Punjab, stationed at Amritsar, Barnala, Bathinda, Fatehgarh Sahib, Jalandhar, Kharar, Ludhiana & Muktsar, started since 1982. In addition to it, it has a Diesel Pump at Jalandhar
v) Supply of pulses to Army Purchase Organisation (APO):
In order to provide the services to the defence personnel, PUNSUP participates in tenders floated by the Army Purchase Organisation, Ministry of Defence, Government of India, New Delhi for procurement of pulses, through its Liaison Office at New Delhi, for which substantial business activities are transacted every year on assured profit basis.
vi) Mid Day Meal
PUNSUP is a nodal agency for distribution of foodgrains under Mid Day Meal Scheme of Government of India vide which the stocks of foodgrains are taken from FCI godowns and distributed amongst thousands of schools scattered throughout the State of Punjab.
In order to cater to the consumers of the State in more effective way and run its other activities, PUNSUP has a fleet of 43 vehicles, comprising of HTV trucks, Mazda trucks, LCVs. On one hand, these vehicles facilitate in speedy distribution of essential commodities and on the other this fleet helps in carrying stock articles from one station to another. With this fleet, PUNSUP has been saving a considerable amount, ranging from Rs.80 Lac to Rs.110 Lac every year, as against by getting got done by hiring private vehicles.