The pace of government procurement of wheat will increase from next month

27-Mar-2025 04:29 PM

🌾 Government Wheat Procurement to Accelerate from April

📍 New Delhi – While early wheat harvesting began in Madhya Pradesh, Rajasthan, Uttar Pradesh, and Gujarat by mid-March, the supply remains limited. However, from April 2025, wheat arrivals in Punjab, Haryana, and Bihar are expected to increase sharply, boosting government procurement efforts.

📈 Wheat Production & Procurement Targets

🔹 Estimated production (2024-25 Rabi season): 1154.30 lakh tonnes (record high).
🔹 Previous year (2023-24 estimate): 1132.90 lakh tonnes.
🔹 Government procurement target: 310 lakh tonnes.

💡 Market Insight:
📌 Despite the record production estimates, wheat prices in open markets remain higher than MSP.
📌 Trade bodies estimate actual production at ~1100 lakh tonnes, suggesting official figures may be inflated to influence market sentiment.

📍 Key Wheat-Producing States & Procurement Trends

✅ Top contributors to the central pool: Punjab, Haryana, Madhya Pradesh.
✅ Other key states: Uttar Pradesh, Rajasthan, Bihar.
✅ Challenges in Uttar Pradesh, Rajasthan & Bihar: Procurement has been low in recent years, but Rajasthan may see improvement this year due to bonus incentives.

🔮 Market & Policy Outlook

🌾 Government incentives in Madhya Pradesh & Rajasthan may lead to higher procurement at MSP centers.
📉 Industry speculation: Production figures might be revised in upcoming estimates, affecting price trends.
💰 Higher market prices could limit procurement unless additional policy measures are introduced.