Necessary preparations started for government procurement of wheat in major producing states

17-Jan-2025 12:15 PM

The Indian government has started preparations for the procurement of wheat in major producing states, aiming for the 2025 Rabi Marketing Season (April-June).

The Union Minister of Food, Consumer Affairs, and Public Distribution recently held a virtual meeting with the Food Ministers of Uttar Pradesh, Madhya Pradesh, Bihar, Gujarat, and Rajasthan, as well as the Cooperative Minister of Bihar, to review the procurement plans.

The Union Food Minister highlighted that these states have strong potential to increase wheat procurement, which is crucial for national food security and controlling price inflation.

However, the procurement performance in these states has been underwhelming in recent years, despite good wheat production.

In contrast, Punjab and Haryana have seen better results in wheat procurement. In states like Madhya Pradesh and Rajasthan, although farmers are being offered a bonus of Rs. 125 per quintal above the MSP, procurement levels still fall short of expectations.

For 2025, the government has set a target of procuring 300 lakh tonnes of wheat, the same as last year’s initial target.

Despite an increase in the MSP by Rs. 150 to Rs. 2425 per quintal, the government remains concerned about procurement levels due to the open market price being significantly higher.

The states involved have committed to making every effort to meet the procurement targets, with procurement likely to begin in March in states such as Rajasthan, Madhya Pradesh, Uttar Pradesh, and Gujarat.