Activity of private firms increased in wheat procurement in Ludhiana, Punjab

08-May-2025 04:00 PM

Ludhiana. This time, private firms are showing significant activity in wheat procurement in the mandis of Ludhiana, a major wheat-producing district in Punjab, which is impacting government procurement.

According to available information, government wheat procurement in Ludhiana district has declined from 7.10 lakh tonnes to 6.39 lakh tonnes as of May 6, compared to the same period last year.

Meanwhile, private firm procurement has risen to over 1.60 lakh tonnes, accounting for about 20 percent of the total procurement.

During the entire previous Rabi marketing season, private firms had procured 1.13 lakh tonnes of wheat in the district, whereas this season, procurement has already surpassed 1.61 lakh tonnes by May 6. Government agencies are procuring wheat at the minimum support price of Rs 2425 per quintal.

So far, 1.80 lakh tonnes have been procured by Pangrain, 1.76 lakh tonnes by Markfed, 1.20 lakh tonnes by Punsup, 93 thousand tonnes by Punjab State Warehousing Corporation, and 59 thousand tonnes by the Food Corporation of India (FCI).

In contrast, private firms are offering farmers prices above the MSP, which is helping them successfully increase their procurement.

While Pangrain remains the largest wheat procurement agency in Punjab, its procurement volume in Ludhiana is significantly lower than last year’s 2.09 lakh tonnes.

This suggests that farmers are showing a clear preference for selling to private buyers. Private firms are offering Rs 75 to Rs 100 per quintal more than the support price.

Official figures show that during the current Rabi marketing season, a total of about 8.07 lakh tonnes of wheat arrived in 147 mandis of Ludhiana district by May 6, out of which 8.04 lakh tonnes were procured.

The target for wheat arrival in these mandis was 8.29 lakh tonnes, 97 percent of which has been achieved. The procurement period will continue until May 15, and more arrivals are expected.

However, only 6.80 lakh tonnes of wheat have been lifted from the mandis so far. Private firms are lifting their procured wheat more swiftly, while the pace of government agency lifting remains slow.