FCI’s wheat & rice purchase slows on lower arrival, moisture, firm prices
New Delhi: Wheat and paddy procurement by the Food Corporation of India (FCI) have been stagnant, due to lower arrivals, higher moisture content and firm prices.
In the case of wheat, despite the government kicking off procurement earlier than it’s scheduled on 1 April, in Uttar Pradesh, Bihar and Rajasthan, purchases slowed down significantly as arrivals, especially in northern states like Punjab, Haryana and Uttar Pradesh, dropped notably compared to last year. All-India arrivals of wheat have fallen nearly 35% year-on-year to 8.6 million tonnes (mt). This is attributed to higher moisture content present in the crop, delaying harvesting, a senior official told Mint.
As a result, wheat procurement by the government to date has been 36% lower than a year earlier.
As far as paddy or rice is concerned, procurement remains lower than the previous season due to higher paddy prices, driving farmers to sell their produce to private traders, the official added.
Paddy procurement during the 2023-24 kharif marketing season was 7% lower than the last season at 68.5 mt, while procurement of wheat till date in the 2024-25 rabi marketing season has been 7.1 mt against 11.1 mt during the corresponding period last year, according to the FCI and Central food grains procurement portal.
“Moisture content in crops in these states is higher because of cool weather and cloudy conditions. The crop is in the field. It is not being harvested,” the official said, seeking anonymity amid ongoing general elections.
