Wheat procurement exceeds 55% of target, touches 205 lakh tonnes

With the pick up in pace of wheat procurement, the deficit has narrowed down to 8 per cent as of April 30 from 25 per cent a week ago. However, the likely lower than expected procurement in key states like Madhya Pradesh, Rajasthan and Uttar Pradesh may make it tough for the Centre to meet the overall procurement target of 372.9 lakh tonnes for the season.

Wheat procurement in the country reached 205.42 lt by April 30, as against 222.89 lt year-ago, according to the official data. Since the procurement in last two years were below expectations, a comparison with purchases made in the same period in 2021 shows that it was 280.39 lt. The Centre had purchased over 12 lt in first two days of May in 2021, officials said while highlighting that the government had purchased a record 433.44 lt of wheat in whole year. The government had procured 187.92 lt of wheat in 2022-23 and 261.97 lt in 2023-24.

“Though Covid factor was there in 2021, but in terms of production it was a normal year. But, the last two years were unusual as despite tall claims by agriculture ministry about bumper wheat production, the Centre could not mop up adequate wheat. However, due to previously held grain in the reserves, it sold a record 100 lt between June and March of 2023-24 fiscal and was able to put a check on prices,” said an official source.

State-wise analysis

Despite the export ban and a restriction on traders to participate in government’s wheat auction programme, the demand was so high that the government had to keep raising the weekly offer as well as the buying limit from time to time and the offtake remained over 95 per cent.

Wheat procurement in Punjab stood at 95.97 lt till April 30, down by about 10 per cent from same period last year’s 106.54 lt, which millers and state officials attribute to this year’s delayed harvest of about 10 days. The progressive procurement had recorded a drop of 49 per cent until April 23.

Wheat procurement in Haryana, where the target is 80 lt, has reached 62.75 lt till April 30, up 8 per cent from 58.27 lt year-ago. Officials said that 90 per cent of harvesting is completed in Haryana.

The government is hopeful of procuring 210 lt per the target from Punjab and Haryana whereas the main problems are in Rajasthan, Uttar Pradesh and Madhya Pradesh, where the combined target is 160 lt.

Relaxed specs

The Centre on April 23 relaxed quality specifications for wheat in MP and Rajasthan so that there may be some improvement in the purchases. The Centre has bought 2.20 lt of wheat with relaxed specifications in Rajasthan from April 24, which is nearly at par with 2.31 lt purchased between March 13 and April 23. In MP, the Centre has bought 6.43 lt of wheat after relaxations of the norms.

The purchase in Madhya Pradesh has dropped 35 per cent to 36.13 lt from 55.6 lt, but it is higher at 4.52 lt against 1.06 lt in Rajasthan. In both these states, the local government is paying ₹125/quintal bonus over and above the minimum support price of ₹2,275/quintal to purchase wheat from farmers.

The Centre has bought 5.88 lt of wheat from Uttar Pradesh so far, whereas the aim is to buy 60 lt in this season. Though the purchases in UP are much higher than nearly 1.31 lt bought in the year-ago period and also according to the arrival volume, but holding back of the grain by the farmers could be counter productive for the government to meet the target, traders said.

The higher procurement in UP and Rajasthan was due to low level of purchases in the entire season during 2023-24. While UP had contributed a total 2.2 lt, Rajasthan bought 4.38 lt of wheat for Central Pool in 2023-24 fiscal.