Wheat Procurement and Market Update

06-Mar-2025 02:32 PM

Wheat Procurement and Market Update  
The government has set a target to procure 31 million metric tons (MMT) of wheat this season, but achieving this goal seems challenging.  
- Market prices are running above the Minimum Support Price (MSP).  
- Despite the arrival of the new crop, prices remain above MSP.  
- Bonus announcements in two states will also support prices:  
 - Madhya Pradesh: Rs.2425 MSP + Rs.175 bonus, totaling Rs.2600/quintal.  
 - Rajasthan: Rs.2425 MSP + Rs.125 bonus, totaling Rs.2550/quintal.  

Market Impact:  
- Farmers in these two states will prefer selling to the government, while millers and stockists may either buy at higher prices in these states or source from other states.  
- Prices in other markets are also expected to remain high.  
- Strong demand from millers will continue.  
- The supply pipeline is nearly empty, meaning whatever wheat enters the market will be sold immediately.