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Informist, Tuesday, Apr. 8, 2025

By Afra Abubacker

NEW DELHI – The Food Corp. of India's wheat purchases in the 2025-26 rabi marketing season so far have surged over 100% to 1.89 million tonnes. So far, FCI has bought 6% of the target and most of the wheat has come from Madhya Pradesh at 1.65 million tonnes, the agency data showed. The wheat procurement target for FY26 is 31.27 million tonnes. 

FCI officials attribute the surge to higher production, early start of procurement, and bonuses over the minimum support price announced by Madhya Pradesh and Rajasthan. Procurement has been underway in Rajasthan, Madhya Pradesh, and Uttar Pradesh since last month, against the typical starting period of April. 

So far, Madhya Pradesh procured 1.65 million tonnes of wheat, up from 846,837 tonnes during the corresponding period last year. Rajasthan procured 151,427 tonnes, up from 26,723 tonnes, and Uttar Pradesh bought 89,017 tonnes, against 38,891 tonnes last year, the data showed. 

The Madhya Pradesh government has announced a bonus of INR 175 and Rajasthan INR 150 over and above the minimum support price of INR 2,425 per 100 kg. The Centre had hiked the MSP of wheat for 2025-26 rabi season by INR 150 from INR 2,275 per 100 kg last year. 

Amid good rates, farmers sowed wheat across 32.5 million hectares, up 2.2% on year. Wheat production is estimated to rise to a record 115.4 million tonnes in 2024-25 (Jul-Jun) from 113.2 million tonnes, according to the farm ministry. 

Since last week, farmers in four more states--Punjab, Haryana, Bihar, and Gujarat--have started selling wheat to government agencies. Except for Haryana, the other states have registered significant on-year rises in wheat purchases. Wheat purchases in Haryana are down 85% on year at 2,637 tonnes. "Procurement just started. Haryana will catch up," an FCI official said. He added that procurement in Punjab and Haryana would pick up pace after Bhaisakhi on Apr. 13.

Wheat purchases in Punjab so far stand at only 33 tonnes, though higher than 7 tonnes last year. Of the 12.4 million tonnes target for Punjab and 7.5 million tonnes in Haryana, agencies have only bought a minuscule till date. 

So far, FCI and state agencies have bought 28% of the 6-million-tonne target in Madhya Pradesh, 8% of the target of 2 million tonnes in Rajasthan, and 3% of the target of 3 million tonnes in Uttar Pradesh, the data showed. Bihar and Gujarat bought 1% each of the 200,000 tonnes, and 100,000 tonnes targets, respectively. 

Last year, the government bought only 26.61 million tonnes of wheat against the target of 30-32 million tonnes. At that time, Madhya Pradesh was the major drag on wheat procurement due to crop damages, unseasonal rain, and higher market rates.  End

Edited by Avishek Dutta

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