Wheat procurement for 2024-25 sees slight dip, but likely to pick up soon
“Wheat procurement for 2024-25 begins positively, down 17% from last year due to late harvesting and elections. Officials optimistic about pace picking up. All India production estimated at over 112 million. Farmers hold produce, private players increase buying. UP sees 397% jump in purchases. Target: 37 million tonnes. Crucial for PMGKAY and price control. Reserves at multi-year lows, procurement to replenish.”
Wheat procurement for the 2024-25 marketing year has started on a positive note though total procurement till April 25 is still 17 per cent less than the same period last year.
The drop in the purchases so far is largely due to late harvesting in some major growing states and also because of the ongoing elections in north India.
Officials are hopeful that procurement will pick up pace once the dust settles on the different factors that impact the purchases.
Also, the subdued start to purchase season has raised some questions on the total harvest in some major growing states such as Madhya Pradesh, though officials believe that on an All India basis wheat production in 2024-25 is expected to be over 112 million as per the second advance estimate.
The drop in procurement could also be on account of farmers holding on to their produce in anticipation of higher rates later during the year or increased buying by private players who are looking to replenish their inventories.
In some states like UP, there is an unofficial diktat for the private players not to aggressively purchase till the time government purchases continue.
This has resulted in a 397 per cent jump in purchases till April 25 this year as compared to the same period last year.
India has targeted to procure around 37 million tonnes of wheat this year while last year the actual procurement was over 26 million tonnes.
A healthy procurement of wheat is essential to ensure adequate supplies for the Centre’s free food grains distribution scheme called the Pradhan Mantri Gareeb Kalyan Ann Yojana (PMGKAY) and also keep domestic prices under check.
The purchases will also help to replenish its reserves which have fallen to multi-year lows as on April 1, 2024.
| States | 2024 | 2023 | % Change |
| Punjab | 5764842 | 8359779 | -31.0 |
| Haryana | 5477289 | 5262527 | 4.1 |
| UP | 470009 | 94633 | 396.7 |
| MP | 3221552 | 4620499 | -30.3 |
| Total | 15234494 | 18376977 | -17.1 |
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