More Stories

Informist, Friday, May. 2, 2025

 

By Afra Abubacker

 

New Delhi – The government has raised its wheat purchase target to 33.27 million tonnes from the previously revised goal of 32.27 million tonnes for the rabi marketing season 2025–26 (Apr–Mar), an official from the Food Corp. of India said. This is the second upward revision of the target for this year amid strong procurement momentum in Madhya Pradesh. The revision reflects the government's confidence to meet the target after missing it for three consecutive years.

 

With about two months left before procurement closes by June-end in most states, FCI has already purchased 26.3 million tonnes of wheat as of Thursday--about 80% of the revised target. This is a sharp 23% rise over the same period last year, signalling a significant turnaround.

 

According to consumer affairs ministry, wheat procurement this year has been a result of "concerted efforts" like "preparing state specific action plans based on learnings from previous years which were shared with the states well in advance." These actionable items focused on registration of farmers, readiness of procurement centres, and timely payments to farmers, it said in release.  

 

Madhya Pradesh has been the standout performer this season. The state's procurement target has been raised twice--from 6 million tonnes initially to 7 million and now to 8 million tonnes--following unexpectedly strong arrivals from farmers, the official said.

 

As of Thursday, the state had procured close to 7 million tonnes, marking an 87% jump from last year and meeting 86% of the new target. A key driver of this momentum is the bonus of INR 175 offered over the minimum support price of INR 2,425 per 100 kg, encouraging farmers to sell wheat to the government. This is a marked shift from last year, when procurement in Madhya Pradesh had slowed, pulling down national procurement numbers.

 

Punjab, traditionally the top contributor, has so far purchased 10.7 million tonnes wheat--86% of its 12.4 million tonne goal. Haryana has reached 90% of its target with 6.74 million tonnes of wheat procurement.

 

Rajasthan, too, has made impressive gains, aided by a similar bonus of INR 150 per 100 kg. The state has procured 1.17 million tonnes so far, nearly 2.5 times more than what it had achieved by this time last year. However, Uttar Pradesh--India's largest wheat producer--continues to lag. The state has managed to procure just 783,151 tonnes, covering only 26% of its 3 million tonne target amid a strong presence of private traders in the market. 

 

Given the consumption levels in Uttar Pradesh due to high population, experts say the Centre should temper procurement expectations. "Uttar Pradesh has a limited marketable surplus as farmers often retain wheat for their use or sell it into local private supply chains," said farm expert G.K. Sood. To support procurement in the state, the Centre has relaxed quality norms. Wheat with up to 90% lustre loss is now eligible for procurement without deductions across all districts in Uttar Pradesh.

 

According to the agriculture ministry, India's wheat output for 2024–25 (Jul–Jun) is estimated to hit a record 115.4 million tonnes, up from 113.3 million tonnes last year. Increased harvest combined with early procurement and bonus incentives has accelerated the government's procurement operations this season, raising hopes of surplus wheat stocks.  End

 

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.