Millers & Traders Shift Focus to Wheat from UP & Bihar

17-Mar-2025 12:59 PM

Key Highlights:

1. Market Shift Due to Regional Policies

   • High Mandi tax in Punjab & Haryana discourages procurement there.
   • Bonus over MSP in MP & Rajasthan makes wheat costlier for traders.
   • UP & Bihar become key sourcing hubs for millers, traders, and stockists.

2. Competitive Pricing in Uttar Pradesh

   • Government MSP: ₹2425 per quintal.
   • Market Rate: ₹2500-2600 per quintal (offered by millers/traders).
   • Risk: Higher market rates may reduce government procurement for the central pool.

3. Government Procurement & Restrictions

   • UP establishes 6,500 procurement centers.
   • Mandis in UP may restrict wheat stock from leaving the state to prioritize government procurement.
   • Fast Payments: Farmers to receive payment within 48 hours.

4. Expansion to Other States

   • Gujarat & Maharashtra also see increased wheat purchases due to favorable conditions.

Market Impact & Outlook

• Higher competition for UP wheat may push prices up.
• Government may struggle to meet procurement targets if millers outbid agencies.
• Possible trade restrictions within UP could affect wheat movement.
• Millers & traders may look to Bihar, Gujarat & Maharashtra for additional supply.