CHANDIGARH, Oct. 31 -- For many farmers in Punjab, the recent paddy season has been marked by despair and an estimated Rs.10,000-crore in financial losses. The crisis stems from a combination of prolonged procurement delays and extensive crop damage caused by floods, unseasonal rains, and poor yields.

A wave of frustration is sweeping through the mandis from Amritsar to Doaba. After waiting for months for their crops to reach maturity, farmers are now seeing their produce lose value because damage and discoloration have exceeded the acceptable 5% limit.

"The grain of my produce had already discoloured by the time the crop was ready for harvest," said Gurjit Singh, a farmer from Kapurthala. He said that due to the high moisture, he and o...