Government gets relief from excellent wheat production and better procurement
06-May-2025 04:06 PM
New Delhi. For the past three years, the government had to make several regressive and precautionary decisions regarding wheat. These included banning the commercial export of wheat and its value-added products, imposing stock limits, and reducing allocations under the public distribution system.
Due to high domestic market prices, the general public faced difficulties. The sale of over 94 lakh tonnes under the Open Market Sale Scheme (OMSS) in the financial year 2023-24 brought the central pool stock down to just 75 lakh tonnes as of April 1, 2024—the lowest level since 2008.
The wholesale price of wheat in Delhi rose to Rs 3200 per quintal in January 2025, compared to Rs 2500 in January 2024. Despite efforts to control the price, it remained high for two to three years, raising concerns within the government.
However, the situation has started to improve. With farmers receiving better and profitable prices, both wheat acreage and production have increased. As a result, government agencies and private buyers are procuring large quantities.
The high availability in the market is expected to keep prices stable and reduce the likelihood of unexpected spikes. This will allow the government to increase the wheat supply under various welfare schemes, including the Pradhan Mantri Garib Kalyan Anna Yojana, reducing the strain on open market channels and maintaining a healthy stock level in government warehouses.
The government has already indicated that wheat and its product exports will remain restricted this year, which will support domestic supply and availability.
Government procurement has already exceeded last year's total and is moving steadily toward the target. In Madhya Pradesh, the procurement target was raised by 20 lakh tonnes to 80 lakh tonnes, and procurement performance there is strong.
However, meeting the procurement targets in other states, especially Uttar Pradesh, remains a challenge. Procurement activity has also begun to slow down in Punjab and Haryana.
A concerted effort is being made to meet the total procurement target of 332.70 lakh tonnes. The actual results of procurement will become clearer by next month.