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Informist, Tuesday, Nov. 4, 2025

MUMBAI – The Madhya Pradesh government has requested the Centre to centralise the procurement of wheat and paddy in the state for the upcoming rabi marketing season, citing mounting financial losses and repayment challenges. In a letter to Consumer Affairs, Food, and Public Distribution Minister Pralhad Joshi, Madhya Pradesh Chief Minister Mohan Yadav requested that Food Corp. of India be allowed to directly procure wheat and paddy from farmers in the state.

 

In recent years, wheat procurement in the state has reached 7.774 million tonnes, while paddy procurement stands at 4.349 million tonnes, according to the letter. Madhya Pradesh contributes around 26% of wheat and 6% of rice to the central procurement pool, making it a major contributor, it said. On Oct. 24, the state had announced plans to buy wheat at INR 2,700 per 100 kilogram from farmers during the rabi marketing season 2026-27 (Apr-Mar). This is INR 115 higher than the minimum support price of INR 2,585 per 100 kg announced by the Centre for 2026-27.

 

The Madhya Pradesh government has borrowed nearly INR 722 billion from the banks to run the procurement scheme, but delayed reimbursements from the Centre and slow disposal of the procured stock has worsened the financial strain on the state, Yadav said. As such, Yadav has urged the Centre to grant the Madhya Pradesh government permission to procure both grains via the centralised procurement scheme in place of the decentralised procurement scheme. 

 

Under the centralised procurement system, the procurement of foodgrains in the central pool is undertaken either by FCI directly or by state government agencies, which procure the foodgrains and hand over the stocks to FCI for storage and subsequent issue against the central allocations in the same state or movement of surplus stocks to other states.  End

 

Reported by Udita S. Jaiswal 

Edited by Avishek Dutta

 

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