The Food Corporation of India (FCI) has surpassed its wheat procurement levels from last year, signaling strong arrivals and robust government buying in several key states. As of May 4, the FCI had procured 27.36 million tonnes (mt) of wheat for the central pool, exceeding the 26.6 mt bought during the entire rabi marketing season last year.
This year’s procurement performance is notable, especially considering that by the same date last year, purchases stood at 23.13 mt—an increase of over 4 million tonnes year-on-year.
The Agriculture Ministry has projected a record wheat production of 115.43 mt for the 2024-25 crop year (July–June), owing to favorable weather conditions and increased acreage. The bumper crop has supported procurement efforts, though challenges remain in certain regions.
Surge in Madhya Pradesh
A significant contributor to the rise in procurement is Madhya Pradesh, where purchases have reached 7.27 mt as of early May. This marks a sharp increase compared to 3.89 mt in the same period last year. In response to higher-than-expected arrivals, the Centre revised its procurement target for the state from 6 mt to 8 mt, contributing to an overall upward revision of the national target from 31.27 mt to 33.27 mt.
Punjab Sees Slower Government Buys
However, in Punjab, the traditionally top procuring state, government purchases have lagged behind expectations. This is largely attributed to aggressive buying by private traders, who have offered competitive prices to farmers, thereby diverting stocks away from government procurement centers.
Punjab’s relatively lower procurement levels have raised concerns, given its critical role in the national food security system. Analysts say that the minimum support price (MSP) of ₹2,275 per quintal, though attractive, is being outbid by private millers and exporters amid global market dynamics and domestic demand trends.
Government’s Procurement Outlook
Last week, Food Secretary Sanjeev Chopra expressed confidence that the government would come close to achieving its revised procurement target of 33.27 mt, despite regional variations in performance. “We are seeing strong procurement in states like Madhya Pradesh, Rajasthan, and parts of Uttar Pradesh. While Punjab is witnessing lower participation, overall numbers remain encouraging,” Chopra said.
The government uses the wheat it procures to maintain buffer stocks and to supply its welfare schemes, including the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). A healthy procurement is crucial for maintaining price stability and food security in the country.
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