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Against a revised target of 8 mt for Madhya Pradesh, procurement has reached 7.78 mt, a substantial 69 per cent increase from the 4.59 mt procured last year
| Photo Credit:
PTI
Wheat procurement in Punjab and Haryana concluded with lower volumes compared to last year. This decline is attributed to increased buying by private traders and processors, as well as farmers holding onto more grain. Farmers anticipate higher prices in the coming days and are also factoring in uncertainty related to the India-Pakistan conflict. Procurement will continue in other States.
In Punjab, the final procurement was 11.93 million tonnes (mt), down 3.4 per cent from the 12.35 mt procured by May 15, 2024. The total procurement in Punjab last year, after adjustments, was 12.47 mt. The State government had initially informed the Centre of an expected 12.4 mt purchase this season due to a bounty harvest.
Stockists’ commitment
Naresh Ghai, former president of the Roller Flour Millers Federation of India, said, “Private sector processors purchased approximately 0.5 mt more wheat this year. They faced difficulties in obtaining wheat previously and were entirely reliant on government auctions.” He said millers typically maintain a 6-9 month supply, as larger stockpiles tie up capital.
Sources indicate that many commission agents and stockists provided farmers with substantial advance payments to retain wheat, with a commitment to later lifting the stocks. This arrangement led to reduced market arrivals. A farmer from a Punjab border district said, “We sold our entire surplus after keeping our normal one-year requirement.” However, the farmer said some with storage capacity are holding wheat on behalf of commission agents.
In the 2024-25 open market sale scheme (OMSS), the Food Corporation of India (FCI) sold wheat at ₹2,800/quintal, against the average all-India reserve price of ₹2,464/quintal. In Punjab and some other States, the highest bid price exceeded ₹3,100/quintal due to scarcity, with nearly 100 per cent offtake reported in each auction round.
Haryana also saw a lower procurement this year, ending at 7.08 mt as of May 15, compared with 7.1 mt in the corresponding period a year ago. The total procurement in Haryana last year, after final data, was 7.15 mt. The State had assured the Centre of a 7.5 mt purchase this season.
More buys in M.P.
Interestingly, excluding Punjab, the arrival of wheat in agricultural market yards (mandis) across the five major producing States was 26 per cent higher at 19.18 mt during March 15-May 15 compared to the previous year, according to Agmarknet data. Madhya Pradesh and Rajasthan also recorded significantly higher arrivals at official procurement centers.
The all-India procurement has reached 29.46 mt, a 14.4 per cent increase from the 25.76 mt procured last year. This rise is largely due to increased purchases in Madhya Pradesh and Rajasthan, where State governments are offering bonuses above the minimum support price (MSP) of ₹2,425/quintal. However, the daily procurement rate has decreased from a peak of around 1.5 mt on April 21 to 104,270 tonnes on May 15 and 94,860 tonnes on May 14.
Against a revised target of 8 mt for Madhya Pradesh, procurement has reached 7.78 mt, a substantial 69 per cent increase from the 4.59 mt procured last year. Procurement in the State will continue until June 30, depending on grain arrivals.
Rajasthan has seen a significant improvement, with the Centre procuring 1.65 mt compared to 0.84 mt last year. Purchases are scheduled to continue until June 30. While this may fall short of the 2 mt target, officials consider crossing 1.5 mt a significant achievement, noting active participation from private traders.
Uttar Pradesh is nearing the 1 mt mark but remains far from its 3 mt target, despite procurement commencing on March 15.
The Agriculture Ministry has projected a record wheat production of 115.43 mt for the 2024-25 crop year (July-June).
Published on May 16, 2025
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