India poised to surpass last year's wheat procurement record

Government agencies are set to exceed last year's wheat procurement figure of 262 lakh tonnes in the coming days, with current purchases reaching around 261 lakh tonnes as of Saturday. However, the total is expected to fall short of the initial estimate of 300-310 lakh tonnes.

Madhya Pradesh, experiencing a nearly 33% decrease in procurement compared to last year, has extended its procurement period to May 31. Meanwhile, Punjab and Haryana have recorded higher purchases than last year, with totals of 124 lakh tonnes and 71.4 lakh tonnes, respectively.

Food Corporation of India (FCI) officials remain confident that total procurement will reach 270 lakh tonnes. "The current level of procurement and the stock that we have will be more than enough to meet the food security requirement of providing free foodgrain to 80 crore poor under the PM Garib Kalyan Yojna and other welfare schemes. We will also have good stock for market intervention to check prices, if need arises," said a government official.

Efforts are underway to understand the reasons behind the reduced procurement in Madhya Pradesh, which is unlikely to meet its initial target of 80 lakh tonnes. Despite significant increases in procurement in Uttar Pradesh and Rajasthan, their combined contribution to the central pool is only about 18 lakh tonnes, far below the expected 50 lakh tonnes from UP, Rajasthan, and Bihar. The procurement period in UP is likely to be extended until June to allow more farmers to benefit from the Minimum Support Price (MSP).

Given the current procurement levels, it is unlikely that the government will lift the restriction on wheat exports this year. Additionally, it remains uncertain whether the Centre will revert to the previous wheat-rice allocation ratio that was changed in May 2022 due to reduced procurement and record exports that year.

with inputs from TOI