The pace of government procurement of wheat is expected to increase from next month

25-Mar-2025 05:58 PM

🌾 Government Wheat Procurement to Gain Momentum from April 🌾

📍 Current Scenario
✅ Procurement started in Madhya Pradesh, Rajasthan, and Uttar Pradesh in mid-March.
✅ Slow pace so far – only 49,000 tonnes procured in MP by March 24, 2025.
✅ Higher Prices in MP & Rajasthan due to bonus over MSP:

• MP: ₹2,600/qtl (MSP ₹2,425 + ₹175 bonus)

• Rajasthan: ₹2,575/qtl (MSP ₹2,425 + ₹150 bonus)

📊 Procurement Targets & Expectations
➡️ 2025 Target: 310 lakh tonnes (vs 266 lakh tonnes in 2024).
➡️ Major Buying States from April: Punjab, Haryana, UP, MP.
➡️ Mandis in Punjab-Haryana – Higher tax discourages private traders, boosting government purchases.

⚠️ Challenges & Market Dynamics
🔹 Traders & millers may compete with govt agencies in UP, Gujarat & Bihar.
🔹 Stockists & flour millers may influence prices in major producing states.