Procurement Gains Momentum in Major Wheat-Producing States
India’s wheat procurement drive for the 2025–26 marketing season has picked up significant momentum within just three weeks of launch. Government agencies have already procured over 11.85 million tonnes (MT) of wheat, marking an 85% increase year-on-year compared to the same period last season. The surge is attributed to robust arrivals in major producing states such as Madhya Pradesh, Haryana, and Punjab.
According to the Food Corporation of India (FCI) and respective state procurement bodies, more than 17 MT of wheat has arrived at mandis so far, with substantial procurement recorded in Madhya Pradesh (4.71 MT), Haryana (4.51 MT), Punjab (1.56 MT), Rajasthan (0.64 MT), and Uttar Pradesh (0.4 MT). Officials from the food ministry expect procurement to peak in the coming 10 days, particularly in Punjab and Haryana, which are traditionally among the largest contributors to the central food stock.
Government Targets Highest Procurement Since 2021-22
This year, the government aims to procure 31 MT of wheat under the minimum support price (MSP) scheme—the highest target since the record-setting 43.3 MT purchase in the 2021–22 season. The targeted breakdown includes contributions from Punjab (12.4 MT), Haryana (7.5 MT), Madhya Pradesh (6 MT), Uttar Pradesh (3 MT), Rajasthan (2 MT), and Gujarat (0.1 MT).
The MSP for wheat has been set at Rs 2,425 per quintal, with additional incentives provided by some state governments. Madhya Pradesh and Rajasthan have announced bonuses of Rs 175/quintal and Rs 150/quintal, respectively, for the 2024–25 crop marketing season.
In the past three years, wheat procurement under the MSP had fallen short of government targets, reaching a low of 18.8 MT in 2022–23 due to a smaller harvest. However, it rebounded to 26.2 MT and 26.6 MT in the subsequent two years, respectively. Officials are optimistic that this year’s procurement will meet or exceed the 31 MT goal, thanks to a promising harvest across key wheat-growing regions.
Strong Production Forecasts Bolster Outlook
The agriculture ministry has projected record wheat procurement of 115.3 MT for the 2024–25 crop year (July–June), a 2% increase over the previous year. This growth is supported by a rise in the area under wheat cultivation, which has reached 32 million hectares, surpassing both last year’s 31.56 million hectares and the five-year average.
The wheat procurement processing industry has also forecast a strong output of approximately 110 MT, up from the 105–106 MT in the previous year. The increased supply is expected to not only support government procurement goals but also enhance the buffer stock needed for social welfare schemes and potential open market sales. FCI typically supplies around 18.4 MT of wheat annually for such programs.
If procurement continues at the current pace, the government is well-positioned to stabilize market prices and ensure food security in the months ahead.
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