Government procurement of wheat is likely to be affected due to high market price

21-Mar-2025 08:41 PM

Wheat Procurement May Slow Down Due to High Market Prices

ЁЯЪЬ Current Procurement Status:

  • Procurement for buffer stock has begun in Uttar Pradesh, Madhya Pradesh, and Gujarat.
  • MSP raised to тВ╣2,425 per quintal (+ тВ╣150 increase).
  • Bonus Announced:
    • Madhya Pradesh: тВ╣175 bonus тЖТ Effective price тВ╣2,600 per quintal.
    • Rajasthan: Additional bonus planned.

тЪая╕П Key Challenges:

1я╕ПтГг High Market Prices May Reduce Farmers' Interest in MSP Sales.
2я╕ПтГг Private Traders, Flour Millers & MNCs Offering Higher Prices.
3я╕ПтГг State-wise Variation in Procurement Trends:

  • Punjab-Haryana: High Mandi tax тЖТ More Govt. Procurement.
  • UP, Gujarat, Bihar, Maharashtra: Low Mandi tax тЖТ More Private Buying.

ЁЯОп GovernmentтАЩs Target & Outlook:

  • 310 Lakh Tonnes Procurement Target for 2024-25 (Practical due to high production).
  • First time since 2021 that procurement may exceed 300 Lakh Tonnes.
  • Success depends on whether market price remains below MSP.

ЁЯУК Will farmers choose private buyers over the government this time? 

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