Patiala : Private buyers dominate wheat procurement, offer more than MSP
Private buyers are actively purchasing wheat in Punjab’s grain markets, offering ₹5–40 above MSP. In Sangrur, they bought 75–90% of arrivals, driven by global demand, including impacts from the Ukraine war. In Fazilka, farmers received up to ₹2,600/quintal. Experts note private players are increasingly competing with government agencies, boosting farmer earnings early in the procurement season.
Patiala: Private buyers have significantly increased their participation in the purchase of wheat from grain markets. Although wheat arrivals have just started reaching the grain markets in Punjab, the pace of purchases by private buyers has been notable.
In Sangrur, as of Saturday, private players dominated the market by purchasing 90% of the total wheat arrivals, offering farmers Rs 5-10 more per quintal than the minimum support price (MSP). As of Sunday, the private purchase dominance stood at 75%. In some areas, farmers have reportedly received even higher prices from private buyers.
In 2022-23, a total of 102.76 lakh metric tonnes (LMT) of wheat was purchased in the grain markets across Punjab, with 96.39 LMT bought by govt agencies and 6.37 LMT by private buyers. Similarly, in 2023-24, of the total 125.75 LMT of wheat purchased, private buyers acquired 4.68 LMT, while govt purchase stood at 121.07 LMT. In 2024- 25, the total purchase was 132.11 LMT, with govt agencies buying 124.56 LMT and
private buyers purchasing 7.55 LMT.
In the Abohar area of Fazilka district, the farmers have got prices up to Rs 2,600 per quintal of wheat whereas the private buyers are paying them around Rs 30-40 more than the wheat MSP — Rs 2,425 per quintal, said the DMO, Fazilka.
By Sunday, a total of 5,065 MT of wheat arrivals were recorded, with 4,015 MT procured by private buyers and 1,050 MT by govt agencies in Sangrur district. The private buyers bought 1,385 MT of wheat from Sangrur district, while govt agencies procured 290 MT.
Experts have identified the ongoing Ukraine war as a major reason for the increased participation of private buyers in the wheat market. In Patiala, 50,954 MT of wheat arrived by Sunday, including 27,192 MT as the day’s arrival.
According to official figures, so far, 42,599 MT has been procured, with private players purchasing 7,956 MT. Warehouse, Punsup, and Markfed purchased 7,414 MT, 7,894 MT, and 7,452 MT, respectively. Deputy general manager, Mandi Board, Punjab, said: “There has been a rise in the purchase by the private buyers and farmers are getting higher prices than the MSP.”
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Source : The Times Of India
