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Centre's Wheat Procurement in Current Rabi Season Faces Challenges, May Not Reach Set Target

India aims to procure approximately 37 million tonnes of wheat this season, as per the latest figures from the Food Corporation of India (FCI).
Representational image. Photo: IAEA/Flickr (CC BY-NC-ND 2.0)

New Delhi: Due to a delay in the wheat harvest by about 10-15 days, lack of remunerative in the open market, and poor machinery of state procuring agencies could hinder the Centre from achieving its targeted procurement in the ongoing rabi season.

India aims to procure approximately 37 million tonnes of wheat this season, as per the latest figures from the Food Corporation of India (FCI). Sanjeev Chopra, the secretary of food and public distribution, however, projects a lower figure of 31 million tonnes.

“Taking the worst-case scenario, wheat procurement could be 26 mt, which we did last year. This would be sufficient to meet the NFSA (National Food Security Act) requirement of 18-20 mt and market interventions of 14 mt. We had an opening balance of 8 mt,” says Chopra, according to Livemint.

Despite procurement gaining momentum in recent weeks and the deficit narrowing to 3% as of May 6 from 25% nearly a fortnight ago, the government’s procurement in the 2024-25 rabi season amounted to approximately 23.8 million tonnes as of Monday. This is slightly lower than the 24.5 million tonnes procured during the corresponding period last year.

The rabi season typically spans from October to March, with procurement occurring from April to May. However, this year, the Centre opted to authorise states to initiate procurement based on the crop’s arrival in the market. In many states, wheat arrivals commence in the first half of March.

As of April, there are approximately 19.9 million tonnes of wheat available in the central pool, surpassing the buffer norm of 7.46 million tonnes.

During the 2023-24 rabi season, the government procured 26.2 million tonnes of wheat, falling short of the target of 34.15 million tonnes. In the preceding season, 18.8 million tonnes were procured against a target of 44.4 million tonnes. If the target is not met this year, it would mark the third consecutive year of shortfall.

“There was unseasonal rainfall in Punjab, Haryana and parts of Rajasthan. As a result, moisture content in wheat went high. Therefore, farmers were advised to let the crop mature and not harvest it. Harvest it once the weather improves. Harvesting is delayed by 10-15 days in these states,” Chopra told Mint. “Higher price offerings by private traders in some states like MP (Madhya Pradesh), Rajasthan and Bihar are another reason. We do not resent farmers getting better prices. It is good for farmers to get remunerative prices in the open market.”

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