Government procurement of wheat likely to fall far behind the set target

26-May-2025 11:27 AM

New Delhi. Even unofficially, the government has now acknowledged that wheat procurement for the central pool this year will once again fall significantly short of the target of 333 lakh tonnes.

According to official figures, by May 22, 2025, around 392.93 lakh tonnes of wheat had arrived in mandis across the country. Of this, 297.24 lakh tonnes were procured by government agencies, while the rest was purchased by the private sector.

Government procurement in key contributor states—Punjab, Haryana, and Madhya Pradesh—has practically ended. Of the total, 17.40 lakh tonnes were procured by the Food Corporation of India (FCI), and 279.84 lakh tonnes by state-level agencies.

The government now expects that by the end of the procurement season on June 30, 2025, total procurement may reach close to 300 lakh tonnes.

Despite procurement shortfalls in Madhya Pradesh, Haryana, and Rajasthan, the gap was particularly significant in Uttar Pradesh and Punjab. Initially, the Food Ministry set a procurement target of 312.70 lakh tonnes, which was later revised upward to 332.70 lakh tonnes through two increases of 10 lakh tonnes each—both adjustments made to Madhya Pradesh’s target.

Although procurement is falling short of the target, the central pool’s wheat stock has reached a reasonably comfortable level, helped by a strong carryover from the previous year. This has improved overall supply.

Additionally, over 90 lakh tonnes of wheat have been purchased by private millers, processors, and traders, which is expected to maintain smooth market availability and reduce pressure on the government to release wheat through the Open Market Sale Scheme (OMSS) prematurely.