Government procurement of wheat in Punjab is behind the target but there is a huge increase in commercial procurement
13-May-2025 12:43 PM
Chandigarh. The government procurement of wheat in Punjab during the current Rabi marketing season is expected to end after May 15.
The Union Food Ministry had set a target of procuring 124 lakh tonnes of wheat from the state, which is one of the largest contributors to the central grain pool.
However, the actual procurement has reached only 117 lakh tonnes so far, indicating that the government may fall short of its target once again. Meanwhile, private sector procurement has seen a significant rise.
According to official figures, a total of 128.25 lakh tonnes of wheat has arrived in all the mandis of Punjab so far. Out of this, government agencies purchased 117.25 lakh tonnes, while private buyers—including flour millers, processors, and stockists—purchased the remaining 11 lakh tonnes.
This marks a record level of private sector wheat procurement in the state. To compare, private procurement in previous years stood at 1.14 lakh tonnes in 2021, 6.35 lakh tonnes in 2022, 4.46 lakh tonnes in 2023, and 1.11 lakh tonnes in 2024. In 2025, for the first time, private procurement crossed the 10 lakh tonne mark.
Government agencies have been procuring wheat at the minimum support price (MSP) of Rs 2425 per quintal. However, private buyers in some regions have offered up to Rs 2640 per quintal, which is more than Rs 200 above the MSP.
As a result, many farmers opted to sell their wheat to private buyers rather than to government agencies. Officials have stated that while government procurement remained stable, the increase in private procurement provided farmers with an opportunity to earn better prices, reducing their dependence on MSP-based sales.
According to the Mandi Board, another 50,000 to one lakh tonnes of wheat may arrive in Punjab mandis by May 15. The state government had initially estimated a total wheat arrival of 132 lakh tonnes this season, but actual arrivals have fallen short of this projection due to various factors.
It is also observed that the number of flour mills along the Delhi-Katra highway has increased, boosting local demand for wheat.
Around 50 flour mills are operational in this corridor. The proximity to Delhi and other neighboring states has also facilitated easy transportation and supply of wheat, further encouraging commercial procurement.