Government procurement of wheat likely to be less than the set target for the fourth consecutive year
20-May-2025 01:00 PM
New Delhi. Although the Union Agriculture Ministry has estimated record domestic wheat production of 1154.30 lakh tonnes this year—and the US Department of Agriculture (USDA) has projected an even higher estimate of 1170 lakh tonnes—government procurement is still expected to fall short of the target for the fourth consecutive year.
So far in the current Rabi marketing season, about 296 lakh tonnes of wheat have been procured by government agencies at the national level, significantly below the revised target of 332.70 lakh tonnes. In the previous three years,
procurement stood at 266 lakh tonnes in 2024, 262 lakh tonnes in 2023, and just 188 lakh tonnes in 2022—each year falling short of the official target.
While procurement has increased year by year, it appears unlikely that the figure will cross 300 lakh tonnes this season, especially as procurement has ended in Punjab and Haryana, and activity at government purchase centers in states like Madhya Pradesh, Uttar Pradesh, Rajasthan, and Bihar has slowed.
The data and current trends suggest a shift away from the traditional system of wheat sales dominated by government procurement.
Previously, farmers sold most of their wheat to government agencies, but this year private buyers such as flour millers, processors, traders, and stockists have been more active in purchasing directly from farmers.
These buyers offered prices higher than the government’s minimum support price (MSP), enabling farmers to earn more.
Despite this, the central pool of wheat stocks is stronger this year, and procurement is higher than in the past three seasons, so the government does not face an immediate threat to food security.
Nevertheless, it may avoid quickly releasing wheat into the market under the Open Market Sale Scheme (OMSS).
Instead, the focus could shift toward gradually increasing supply to private traders and stockists. If wheat prices continue to rise, the government may consider imposing stock limits to manage price stability.