Government procurement of wheat reaches 300 lakh tonnes, chances of sharp rise in prices are low
21-Jun-2025 12:12 PM
New Delhi. For the first time in four years, the government procurement of wheat for the central pool has reached 300 lakh tonnes.
Coincidentally, the stock of wheat in government warehouses as of April 1, 2025, was also significantly higher than last year.
This will enable the government to supply sufficient wheat under the Pradhan Mantri Garib Kalyan Anna Yojana and other welfare schemes.
It will also allow the government to release additional wheat stock under the Open Market Sale Scheme (OMSS) as required. The government is closely monitoring the wheat market and is reportedly prepared to initiate OMSS when needed.
This year's wheat procurement has reached 300.03 lakh tonnes, around 34 lakh tonnes more than last year's 266.10 lakh tonnes. In 2023, 262 lakh tonnes were procured, while in 2022 the figure was just 188 lakh tonnes.
Although procurement has once again fallen short of the set target of 332.70 lakh tonnes for 2025, the quantity is notably higher than previous years, providing better room for market intervention.
Wheat arrivals in major wholesale markets of key producing states are proceeding normally, and prices have remained relatively stable with minor fluctuations.
Storage limits are already in place, and traders are required to report their stock levels weekly on the government portal.
The Union Agriculture Ministry has projected domestic wheat production to reach an all-time high in the Rabi season of 2024-25. Similarly, the US Department of Agriculture (USDA) has forecast India's wheat production at a record 1175 lakh tonnes, with consumption estimated at 1125 lakh tonnes. The surplus stock by the end of the marketing season is expected to rise by 41.5 percent to 167 lakh tonnes.
Current trends suggest that a sharp increase in wheat prices is unlikely in 2025, although minor fluctuations of Rs 100–200 per quintal may occur. The government is expected to intervene quickly if prices rise significantly to ensure market stability.