News Capsule: Government wheat procurement down 61% amid higher private buying, delayed harvest
06-Apr-2026 09:39 AM
News Capsule: Government wheat procurement down 61% amid higher private buying, delayed harvest
★ In the 2026-27 rabi marketing season, government wheat procurement has declined by 61% so far, with only 24,000 tonnes purchased as of Wednesday. Higher private buying and delays in harvesting across several states are the key reasons behind the slowdown.
★ Procurement has begun at a slow pace in Punjab, Uttar Pradesh and Rajasthan, while it is yet to start in major producing states like Madhya Pradesh and Haryana. The government has set a target of procuring 30.34 million tonnes this season, with bulk purchases expected to pick up from next month.
★ Unseasonal rains and hailstorms increased moisture content in the crop, leading to a delay of 10–15 days in harvesting. As a result, arrivals in mandis have fallen 38% to about 155,000 tonnes.
★ Out of the total arrivals so far, only 15% has been procured by the government, with most of the wheat being sold to private traders. This is despite market prices ruling below the minimum support price of ₹2,585 per quintal.
★ Higher moisture levels have impacted crop quality, and the government procures wheat with moisture content of up to 12% only. In addition, a higher number of open market yards compared to procurement centres has given private traders better access to farmers.
★ Meanwhile, concerns have emerged over the availability of gunny bags required for procurement. Supply of polypropylene, a key raw material for plastic sacks, has been affected due to disruptions caused by the war in West Asia.
★ The government said current carryover stocks are adequate, but shortages may arise by mid-May as arrivals peak. To address this, fair price shops have been directed to return used bags to procurement agencies, and plastic manufacturers have been prioritised for raw material allocation for agricultural packaging.