Govt sets wheat purchase target at 31 MT
India’s wheat procurement for the 2025-26 rabi marketing season is estimated at 31 million tonnes, up 26% from last year. Major contributing states include Punjab, Haryana, and Madhya Pradesh. The Food Corporation of India (FCI) holds 14.41 MT of wheat, above the buffer norm, ensuring price stability.
The food ministry on Friday estimated wheat procurement by government agencies at 31 million tonne (MT) for the upcoming 2025-26 rabi marketing season (April-June), a 26% increase from the 26.6 MT procured in 2024-25 marketing season.“Various factors impacting procurement, such as weather forecasts, production estimates, and state readiness for procurement operations, were reviewed during the meeting,” the ministry stated after a meeting with state food secretaries.
Punjab, Haryana, Madhya Pradesh, Rajasthan and Uttar Pradesh are the major contributors to the Centre’s wheat procurement under the minimum support price (MSP). Procurement is carried out by agencies such as the Food Corporation of India (FCI) and state procurement corporations. Wheat purchase operations officially begin on April 1, though arrivals in mandis (wholesale markets) typically start by mid-March.
After a record procurement of 43.3 MT in 2021-22, government purchases dropped to a record low of 18.8 MT in 2022-23 due to lower production. However, procurement rebounded by 40% to 26.2 MT in 2023-24.FCI supplies around 18.4 MT of wheat annually for social welfare schemes. Any additional procurement this season will enable the agency to conduct open market sales (OMS) to control price spikes and maintain buffer stocks.
As of now, FCI holds 14.41 MT of wheat stock, well above the April 1 buffer norm of 7.46 MT. So far this fiscal year, FCI has sold around 2 MT of wheat through weekly open market auctions.
According to the agriculture ministry, India’s 2023-24 wheat output (July-June crop year) is estimated at 113.29 MT. The production estimate for 2024-25 is expected to be released soon.Trade sources anticipate that mandi prices will hover around ₹2,600/quintal once the new crop arrives next month. This is because Madhya Pradesh and Rajasthan have announced a bonus of ₹125/quintal over the Centre’s MSP of ₹2,425/quintal for the 2024-25 rabi marketing season.
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Source : Financial Express
