At 30 MT, wheat procurement highest since 2021-22

By Sandip Das

The government’s wheat procurement for the 2025–26 rabi marketing season (April–June) has been completed with a total purchase of over 29.92 million tonne (MT), the highest since the 2021-22 season.

With a small quantity of arrivals reported only in Uttar Pradesh and Rajasthan, the total grain procurement according to officials will be sufficient for distribution through a public distribution system and carry out a market intervention programme.

“While arrivals have been small, sufficient stock is currently available with millers, traders as well as the government agencies curently,”Mukesh Khatod, a trader from Chittorgarh, Rajasthan, told FE.

The quantity of wheat purchased from farmers in key producing states so far is 13% higher than during the same period last year. This procurement is against total mandi arrivals of 40.42 MT across the country.

In comparison, wheat procurement stood at 26.6 MT in 2024–25 season and 26.2 MT in 2023–24 season. After achieving a record procurement of 43.3 MT in 2021–22 season, purchases dropped to a low of 18.8 MT in 2022–23 season due to a decline in output.

For the past three years, wheat procurement under minimum support price (MSP) operations has consistently fallen short of the target. Five states which have contributed mostly to the wheat procurement drive – Punjab (11.93 MT), Madhya Pradesh (7.77 MT), Haryana (7.14 MT) and Rajasthan (2.02 MT).

However, Uttar Pradesh, India’s largest wheat-producing state, has recorded sluggish procurement, with just 1.02 MT purchased so far—well below the season’s target of 3 MT.

Officials told FE that the government will consider additional allocations of wheat to states under the Pradhan Mantri Garib Kalyan Anna Yojana, given the comfortable stock position. At present Food Corporation of India has wheat stock of 36.65 MT, against 27.58 MT as buffer for July 1.

The agriculture ministry has estimated wheat production at a record 117.5 MT during 2024-25 crop year (July-June), an increase of 3.7% over the previous year. Inflation in wheat in April was 7.61% on year.

The average mandi prices across key producing states– Punjab (Rs 2475/quintal, Madhya Pradesh (2,521/quintal), Rajasthan (Rs 2,465/quintal) and Haryana Rs 2,425/quintal on Thursday. The modal retail prices of wheat was Rs 28/kg according to the price monitoring cell of the department of consumer affairs.

This is against the MSP of Rs 2425/quintal for the season while Madhya Pradesh and Rajasthan had announced a bonus of Rs 175/quintal and Rs 125/quintal as bonus respectively over the MSP.

“The department of food and public distribution is maintaining a close watch over the stock position of wheat to control prices and ensure easy availability in the country,” according to a food ministry statement after imposing stock holding limits for retailers and stockists last month.

This article has been republished from The Financial Express.