Impact of Bonus: Massive Surge in Wheat Procurement in Madhya Pradesh and Rajasthan
08-Apr-2025 02:02 PM
Bonus Effect: Massive Surge in Wheat Procurement in Madhya Pradesh and Rajasthan
According to the latest data released by the Food Corporation of India (FCI), a total of 18.96 lakh tonnes of wheat has been procured across the country as of April 7, 2025. This marks an increase of 11.76 lakh tonnes compared to the same period last year.
Madhya Pradesh has taken the lead with wheat procurement reaching 16.50 lakh tonnes, which is 9.76 lakh tonnes more than in 2024. Similarly, Rajasthan recorded a significant rise, procuring 1.51 lakh tonnes, an increase of 1.30 lakh tonnes. The announcement of MSP bonus in these states has clearly boosted procurement activity.
In Uttar Pradesh and Haryana, procurement stood at 89,017.29 tonnes and 2,636.65 tonnes, respectively, with only marginal growth observed.
Meanwhile, procurement remained limited in states like Bihar, Gujarat and Punjab Only 32.90 tonnes of wheat was procured in Punjab, while Gujarat and Bihar reported 1,239.90 tonnes and 2,253.36 tonnes, respectively.
Wheat arrivals in these states are expected to increase in the next 15 days. Better procurement is anticipated from Punjab and Haryana this season. Last year, high open market prices during the arrival season led to lower MSP-based procurement—a similar trend was seen during the Rabi 2023 season.
For millers, Uttar Pradesh remains a key state, where procurement is currently happening at MSP. Arrivals are expected to peak next week, and millers may become active in the buying process. Several major companies are closely monitoring the market.
According to I-Grain India, government procurement may exceed 280 lakh tonnes this year. If that happens, sales under OMSS (Open Market Sale Scheme) are likely to begin earlier and in larger volumes.
Given the current production and procurement levels, speculation around wheat imports may subside, and there could be renewed demands to lift the export ban.
However, to maintain a comfortable stock in the central pool, at least two consecutive bumper harvests are needed. For now, the possibility of opening wheat imports seems unlikely.