Wheat Procurement Falls Short of Government Targets Amidst Bumper Production Year

New Delhi: Wheat procurement has reached 25.30 million tonnes (mt) as of May 12, compared to 25.682 mt during the same period last year, falling short of the government's procurement target of 37.29 mt for this year, according to official data.

According to experts, there are doubts whether it will match last year's actual purchases.

In the past, the government procured 26.20 mt of wheat in 2023-24, 18.79 mt in 2022-23, and a record 43.34 mt in 2021-22. The decline in procurement during a bumper production year is attributed to farmers holding onto their stock in anticipation of higher prices, the Hindu BusinessLine reported.

Procurement in Madhya Pradesh has decreased by 35% to 44.47 lakh tonnes (lt) from 68.85 lt, but has increased in Rajasthan to 7.65 lt from 3.33 lt, and in Uttar Pradesh to 8.17 lt from 1.88 lt. Both MP and Rajasthan are offering a bonus of Rs 125/quintal on top of the minimum support price to encourage farmers to sell wheat.

The Centre aims to buy 60 lt of wheat from Uttar Pradesh, 80 lt from Madhya Pradesh, and 20 lt from Rajasthan. Quality specifications for wheat in MP and Rajasthan were relaxed on April 23 to potentially improve purchases.

In Punjab, wheat procurement has reached 122 lt by May 12, a 2% increase from last year's 119.89 lt, despite an initial target of 130 lt. Haryana has procured 70.51 lt, up 12% from 62.75 lt last year, with a target of 80 lt.

However, experts suggest that offering a bonus in UP could increase procurement, as there is concern about the government's low buffer stock.

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