Wheat Procurement Reaches a Peak of 30 Million Tonnes, Highest Since 2021-22
India Completes Remarkable Wheat Procurement for the 2025-26 Rabi Season
The Indian government has successfully finalized its wheat procurement for the 2025-26 rabi marketing season, amassing over 29.92 million tonnes—marking the highest volume since the 2021-22 period. This effort aims to secure ample stock for public distribution and support market interventions. The Food Corporation of India (FCI) currently holds stocks of 36 million tonnes, well above the mandated buffer levels. (Image Source: PTI)
Insights on Wheat Procurement and Market Dynamics
The government’s procurement initiative for the 2025-26 rabi season, which runs from April to June, has concluded, with total purchases surpassing the 29.92 million tonnes milestone—this is the highest amount secured since the 2021-22 season. Officials report a minimal number of arrivals in states such as Uttar Pradesh and Rajasthan; however, available grain is deemed sufficient for distribution through the public distribution system and for market intervention measures. “Although new arrivals have been limited, adequate stock is present among millers, traders, and government agencies,” Mukesh Khatod, a trader based in Chittorgarh, Rajasthan, informed FE.
Comparative Procurement Figures and Regional Contributions
The volume of wheat procured from farmers in major producing states has increased by 13% compared to the same timeframe last year, accounting for a total of 40.42 million tonnes in arrivals nationwide. In contrast, the previous seasons recorded wheat procurement figures of 26.6 million tonnes for 2024-25 and 26.2 million tonnes for 2023-24. Following a record procurement of 43.3 million tonnes in the 2021-22 season, there was a significant decline to 18.8 million tonnes in the 2022-23 season caused by reduced outputs.
For the past three years, wheat procurement under minimum support price (MSP) operations has consistently fallen short of government targets. The five states contributing prominently to the wheat procurement efforts include Punjab (11.93 million tonnes), Madhya Pradesh (7.77 million tonnes), Haryana (7.14 million tonnes), and Rajasthan (2.02 million tonnes). Notably, Uttar Pradesh, which leads the nation in wheat production, has experienced sluggish procurement with only 1.02 million tonnes collected—significantly under the season’s target of 3 million tonnes.
Government Plans Amidst Stock Availability
Officials have indicated to FE that the government is contemplating additional allocations of wheat to various states under the Pradhan Mantri Garib Kalyan Anna Yojana, given the comfortable stock levels. Currently, the Food Corporation of India possesses 36.65 million tonnes of wheat, surpassing the 27.58 million tonnes buffer that was established for July 1. The agriculture ministry projects record wheat production at 117.5 million tonnes for the 2024-25 crop year (July-June), marking a 3.7% increase from the prior year.
Price Trends and Government Monitoring Efforts
April’s inflation rate for wheat stands at 7.61% year-on-year. Average mandi prices across prominent producing states are as follows: Punjab (Rs 2475/quintal), Madhya Pradesh (Rs 2,521/quintal), Rajasthan (Rs 2,465/quintal), and Haryana (Rs 2,425/quintal) as of Thursday. The modal retail price of wheat is noted at Rs 28/kg, according to the price monitoring division of the Department of Consumer Affairs.
In contrast, the MSP for the season is set at Rs 2425/quintal, with Madhya Pradesh and Rajasthan announcing bonuses of Rs 175/quintal and Rs 125/quintal over the MSP respectively. “The Department of Food and Public Distribution is closely monitoring the wheat stock levels to control prices and ensure availability throughout the country,” stated the food ministry following the implementation of stock holding limits for retailers and stockists last month.
