Wheat arrivals, procurement gather pace
Wheat procurement under MSP has surged in the 2025–26 season, with over 11.85 million tonnes purchased so far—85% more than last year. Major contributions came from Madhya Pradesh, Haryana, and Punjab. Procurement is expected to peak soon, with a 31 MT target likely achievable due to a robust harvest. FCI may use surplus for market interventions and welfare schemes.
Within the first three weeks of the commencement of the government’s wheat purchase from the farmers at minimum support price (MSP) in the 2025-26 market season (April-June), arrivals have gained momentum. Procurement of grain by government agencies is also in full swing .
The arrivals and purchase operations of wheat are likely to reach peak levels in the next one week.
The agencies – Food Corporation of India and state government bodies — have purchased over 11.85 million tonne (MT) of wheat in the key producing states till Saturday, which is 85% more than volume of purchase during same period in the previous marketing year.
Against arrivals of over 17 MT of wheat in mandis, major purchase of grain has been reported from Madhya Pradesh (4.71 MT), Haryana (4.51 MT), Punjab (1.56 MT), Rajasthan (0.64 MT) and Uttar Pradesh (0.4 MT).
“In the next 10 days or so, procurement is likely to peak in Punjab and Haryana, the biggest contributors to the central pool stock,” a food ministry official said.
The government is aiming to buy 31 MT of wheat purchased from farmers under MSP from mainly Punjab (12.4 MT), Haryana (7.5 MT), Madhya Pradesh (6 MT), Uttar Pradesh (3 MT), Rajasthan (2 MT), and Gujarat (0.1 MT) in the 2025-26 season.
Sources said that with the expectation of a robust crop harvest across all the major growing regions, the government is likely to meet the wheat procurement target of 31 MT for the current marketing season for the first time after the 2021-22 season. In the last three years, MSP purchases of wheat have been below the target.
FCI supplies around 18.4 MT of grain for social welfare schemes including free ration schemes and any additional procurement in the current season would help it carry out open market sales to curb possible spikes in prices and keep a buffer.
After achieving a record procurement 43.3 MT in 2021-22 season, the purchase by the government agencies under the MSP operations fell to record low of 18.8 MT in 2022-23 season because of lower output.
However, subsequently it has risen by around 40% to 26.2 MT and 26.6 MT in 2023-24 and 2024-25 marketing year respectively.
Procurement of wheat is currently being undertaken at the minimum support price (MSP) of Rs 2425/quintal in Punjab, Haryana, Uttar Pradesh, Bihar and Gujarat.
Meanwhile, Madhya Pradesh and Rajasthan government has announced a bonus payment of Rs 175/quintal and Rs 150/quintal respectively over the MSP of for the 2024-25 marketing season.
The wheat processing industry had projected wheat output in the current year at 110 MT against 105-106 MT in the previous year.
The agriculture ministry has estimated wheat production at a record 115.3 MT during 2024-25 crop year (July-June), an increase of 2% over the previous year. Wheat sowing this season has increased to 32 million hectare (Mha) against 31.56 Mha last year and higher than the average sown area of the last five year.
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Source : Financial Express
