Government Procurement of Paddy at MSP – Key Insights

03-Apr-2025 05:03 PM

Government Procurement of Paddy at MSP – Key Insights
Kharif Season Procurement Overview
Procurement ended in major states like Punjab, Haryana, Chhattisgarh, UP, MP, Bihar, and Uttarakhand.
March 2025: Procurement concluded in Tamil Nadu, Andhra Pradesh, Kerala, Maharashtra, and Odisha.
Limited procurement continues in West Bengal, Assam, Jharkhand, and Tripura.
Rabi Season Procurement (Starting April 1, 2025)
Production Estimate: 157.60 lakh tonnes of rice.
Procurement Target: 70 lakh tonnes.
State-wise Trends in Kharif Rice Procurement
Increased Procurement:
Odisha: +10% (40.10 lakh tonnes from 36.40 lakh tonnes).
Andhra Pradesh: +8% (15.30 lakh tonnes from 14.10 lakh tonnes).
West Bengal: More than doubled (17 lakh tonnes from 7.80 lakh tonnes).
Tamil Nadu: +1 lakh tonnes (16 lakh tonnes from 15 lakh tonnes).
Telangana: +14% (36.20 lakh tonnes from 31.70 lakh tonnes).
Bihar: +27% (26.30 lakh tonnes from 20.60 lakh tonnes).
Uttar Pradesh: +8% (38.60 lakh tonnes from 35.80 lakh tonnes).
Madhya Pradesh: +3.5% (29.20 lakh tonnes from 28.20 lakh tonnes).
Declining Procurement:
Punjab: -6% (116.30 lakh tonnes from 124.30 lakh tonnes).
Haryana: -9% (36 lakh tonnes from 39.50 lakh tonnes).
Kerala: -5% (1.42 lakh tonnes).
Maharashtra: -8% (6.59 lakh tonnes).
Missed Targets:
Punjab’s target: 124 lakh tonnes → Actual: 116.30 lakh tonnes.
Haryana’s target: 40 lakh tonnes → Actual: 36 lakh tonnes.
Market & Policy Implications
Overall strong procurement, but shortfalls in Punjab & Haryana signal possible shifts in cultivation or policies.
Rabi procurement outlook: Meeting the 70 lakh tonne target depends on arrivals and government incentives.
Price impact: Surplus rice stocks could stabilize domestic prices but may pressure global rice export markets.