India- Record Wheat Production, But Tepid Procurement – Private Traders Dominate

20-May-2025 10:02 AM

India- Record Wheat Production, But Tepid Procurement – Private Traders Dominate
★ India’s wheat production for 2025-26 is estimated at a record 117 million tonnes, as per USDA projections. However, government procurement remains sluggish. Against the revised target of 33.3 million tonnes, only 29.6 million tonnes have been procured so far. Crossing 30 million tonnes now seems unlikely, with procurement period in Punjab, Haryana and Bihar is over and arrivals weakening in other states too.
★ This is the third consecutive year the government will miss its procurement target, indicating a shift in traditional grain marketing. Despite the bumper harvest, reduced procurement points to strong participation by private traders, who offered higher prices and bought directly from farmers.
★ Farmers increasingly prefer private buyers over mandis for better rates. The positive takeaway is that the government has secured enough wheat stock for PDS, welfare schemes, emergencies, and OMSS.
★ Market watchers are keen to see when private players release their stocks. Several traders have already declared good inventory on official portals, reflecting responsible trade practices. If price volatility persists, stock limits may be considered.
★ Last season, limited OMSS wheat led to tight stocks for many millers. This year, improved supply and healthy offtake have stabilized the pipeline.
★ Overall, the country holds sufficient wheat stocks across government, traders, and millers. The government is likely to push for higher utilization of open market stocks before initiating new OMSS rounds.