Government Eyes Increased Wheat Procurement in Major Producing States

24-Apr-2025 01:49 PM

New Delhi. The Central Government is closely monitoring wheat procurement across key producing states as private traders, stockists, and millers become increasingly active in the market.

This growing private participation, coupled with stock-holding tendencies among large farmers, has raised concerns over achieving the government’s wheat procurement target for the central pool.

For the 2025 marketing season, the Union Food Ministry has set a procurement target of 312.70 lakh tonnes, distributed across major states: 124 lakh tonnes in Punjab, 75 lakh tonnes in Haryana, 60 lakh tonnes in Madhya Pradesh, 30 lakh tonnes in Uttar Pradesh, 20 lakh tonnes in Rajasthan, 2 lakh tonnes in Bihar, 1 lakh tonne in Gujarat, and 70,000 tonnes from other states.

In comparison, wheat procurement stood at 266 lakh tonnes in 2024, 262 lakh tonnes in 2023, and 188 lakh tonnes in 2022.

A senior official from the ministry expressed optimism, stating that wheat procurement this year is likely to exceed last year’s figure, potentially reaching 280-290 lakh tonnes initially, with scope to meet or surpass the full target.

The central pool already holds adequate wheat reserves, ensuring stable domestic availability and minimizing the risk of any sudden price spikes.

To support procurement efforts, Madhya Pradesh and Rajasthan are offering an additional bonus of ₹175 and ₹150 per quintal respectively above the Minimum Support Price (MSP).

Punjab and Haryana, known for robust government procurement, are expected to perform well. However, Uttar Pradesh remains a challenge, as many farmers there are holding out for higher prices than the MSP, driven by active trading by private buyers and flour millers.

With an excellent wheat harvest reported this season, commercial buying remains strong, and the government expects a smooth supply scenario in the domestic market.