Robust purchase of wheat continues for central pool

16-Apr-2025 07:12 PM

New Delhi. Government procurement of wheat is going on actively across major producing states, led by the Food Corporation of India (FCI) and its affiliated agencies.

The Centre has set a national procurement target of 312 lakh tonnes for the current Rabi marketing season, with key contributions expected from Punjab (124 lakh tonnes), Haryana (75 lakh tonnes), Madhya Pradesh (60 lakh tonnes), Uttar Pradesh (30 lakh tonnes), and Rajasthan (20 lakh tonnes).

Procurement began in March in states like Madhya Pradesh, Rajasthan, and Uttar Pradesh, while Punjab and Haryana started buying from April 1.

Punjab remains the largest contributor to the central wheat pool, with major procurement activity taking place between April 15 and May 15.

Incentives are boosting procurement in Madhya Pradesh and Rajasthan, where farmers are being offered bonuses of Rs 175 and Rs 150 per quintal respectively, over the MSP of Rs 2,425 per quintal.

By April 12, wheat procurement had already reached 31 lakh tonnes nationwide, up from 17 lakh tonnes during the same period last year, with Madhya Pradesh contributing over 27 lakh tonnes alone.

As of April 1, wheat stocks in the central pool stood at over 117 lakh tonnes. With the strong pace of procurement and abundant new crop arrivals, the government expects to build robust reserves. Falling market prices due to fresh supply are also aiding government buying.

In Punjab, godowns are being cleared to store the incoming wheat. Meanwhile, flour millers and traders are also actively purchasing wheat, which could pose some competition to government agencies.

However, with an expected bumper harvest this season, ample availability is likely to benefit all buyers.