The Agriculture Ministry has estimated a record production of 115.43 mt of wheat for the 2024-25 crop year (July-June)
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MOHAMED ABD EL GHANY
The government’s wheat procurement through the Food Corporation of India (FCI) for buffer stocks has crossed last year’s purchase of 26.6 million tonnes (mt) and reached 27.36 mt as of May 4. The Centre purchased 23.13 mt of wheat in the corresponding period a year ago.
The Agriculture Ministry has estimated a record production of 115.43 mt of wheat for the 2024-25 crop year (July-June).
Last week, Food Secretary Sanjeev Chopra said the government was hopeful of procuring close to the initial target of 31.27 mt. However, the government raised the target in Madhya Pradesh to 8 mt from 6 mt, taking the all India target to 33.27 mt. The procurement in Madhya Pradesh has reached 7.27 mt against 3.89 mt a year ago.
Scarcity in Punjab
Until May 4 this season, after procurement began on March 10, the Centre has bought 11.19 mt from Punjab against 11.27 mt a year ago. For the first time this season, the procurement in Punjab has slid, which experts attribute to large-scale buying by the private sector. Until May 2, the purchase was higher in Punjab from the year-ago period.
“In 2024-25, there was big scarcity in Punjab as traders and millers of the State as well as neighbouring States had not bought wheat in anticipation of sales from the Food Corporation of India, which had sold 10 mt in 2023-24. So, when weekly tender was scarce to meet milling demand, some mills bought at over ₹3,100/quintal against reserve price of ₹2300/quintal,” said a former top FCI official. Towards the end of the open market sales, the government substantially hiked the offered quantity for Punjab, he said.
As per the latest data, the Centre has bought 6.77 mt from Haryana against 6.72 mt a year ago. it was as high as over 0.7 mt from the year-ago period as of April 24. Purchases seem to have slowed down in Rajasthan, where the Centre procured 1.28 mt from Rajasthan against 0.55 mt a year ago.
UP remains a concern
Uttar Pradesh continues to be a concern with very poor contribution to the Central Pool stocks, which is used for distribution through ration shops and kept for food emergency, as wheat procurement has reached 0.85 mt against 0.68 mt a year ago.
In 2022, the government cut wheat supply through ration shops by substituting the entitlement with rice. It continued in 2023 and 2024 as well. However, some partial restoration was done in October last year, after the Food Ministry approved 3.5 mt of additional wheat until March 2025. The government has decided to first make some adjustment in allocation after the end of wheat procurement based on actual quantity it buys.
Published on May 5, 2025
