Wheat Procurement in Madhya Pradesh: Is It Truly a Success?
17-May-2025 12:24 PM
Wheat Procurement in Madhya Pradesh: Is It Truly a Success?
★ This year, Madhya Pradesh witnessed a record wheat harvest. The weather was favorable, and fields were brimming with golden grain. But when it came to procurement in mandis, the government’s performance wasn’t quite as impressive as the production figures.
★ Procurement has reached 77.8 lakh tonnes (so far)— and some departments are already patting themselves on the back. But take a moment to consider this. Would the number have even touched 50 lakh tonnes if the government hadn’t announced a Rs. 175 per quintal bonus over MSP?
★ Procurement Trends in Madhya Pradesh (Lakh Tonnes)
Rabi Season | Wheat Procurement
2019-20 | 67.25
2020-21 | 129.42
2021-22 | 128.16
2022-23 | 46.04
2023-24 | 70.97
2024-25 | 48.39
2025-26 | 77.80 (ongoing, but mandi arrivals are dropping)|
★ Back in 2020 and 2021 — despite difficult circumstances — Madhya Pradesh was a national leader in wheat procurement. But in the last three years, things have changed. Procurement has become erratic and largely incentive-driven.
The Bonus Effect — And Its Consequences
★ The Rs. 175 per quintal bonus pushed state wheat prices above those in other major producing states. This has created a new challenge .
★ How will millers in Madhya Pradesh cope with these higher prices?
★ When millers are forced to buy wheat at elevated rates, the cost of producing flour, maida, suji, and bran also increases. The natural question then arises, who will buy these products at higher prices? Certainly not buyers from other states where input costs are lower.
★ This puts millers in a tough spot. They either absorb the cost (hurting margins) or raise prices (risking sales). In both scenarios, competitiveness suffers.
-term numbers or thinking about long-term sustainability?
★ To call this a “good procurement season” may be technically correct — but only on paper. The real impact will be seen in the weeks ahead, as market dynamics, miller costs, and trade flows react to these elevated wheat prices.