Punjab Direct Purchase MSP Levy Waiver

A direct purchase licence issued by the Punjab Agricultural Marketing Board generally requires the buyer to pay 2% above the Minimum Support Price when buying produce directly from farmers. Under Clause 12.9 of Punjab's Industrial and Business Development Policy 2022, Anchor Units are exempted from this requirement for permissions granted under Direct Purchase.

For a processor procuring grain, oilseed or other MSP-notified produce in large volumes, that 2% of procurement value recurs on every consignment. Waiving it is what allows farm-gate sourcing to compete with mandi purchase for an anchor project.

1. Obtain Anchor Unit status for the project from the Government of Punjab, in accordance with the Industrial and Business Development Policy 2022. 2. Secure Direct Purchase permission along with the corresponding licence issued by the Punjab Agricultural Marketing Board. 3. Submit an application on the Invest Punjab Business First portal seeking exemption from the licence condition of 2% over MSP, and cite the anchor approval in that application. 4. Enclose the PAMB licence, the procurement plan and the anchor unit sanction. 5. Once the exemption is entered against the licence, procurement can go ahead without the 2% levy.

Anchor Unit status is conferred by the State when a project receives approval. The exemption that follows is not won through competition; it takes the form of a relaxation of licence conditions, handled between the department and PAMB.