Wheat procurement may touch 27 million tonnes, 8.5 mt more than annual requirement

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Daily wheat purchases fell to 0.2 million tons since Wednesday, May 10, from about 0.5 million tons. May 2 with the arrival of grain Decrease in the squares of the Agricultural Marketing Commission and purchasing centers. Despite this development, the government hopes to buy about 27 million tons of wheat this year, which is about 8.5 million tons more than the annual demand under the food security law and other welfare systems.

Although it (27 million tons) is less than Estimated Purchases (34.15 metric tons)it is much more than required (18.4 metric tons), Food Foundation of India Chairman Ashok K Meena said business line. For the first time, he said, there was no distress call from anyone to secure the purchase This year farmers were getting the minimum support price (MSP) or more.

Up to 85 percent of expats in Uttar Pradesh are bought by the private sector, who offer more than MSP. “From now on, the number of arrivals will slowly dwindle as those who wanted to sell to the government already did,” Mina said. “It is a good situation that while the farmers get good prices for their wheat, the government is also able to buy more than it requires,” he said.

up from a 15-year low

He was asked whether the surplus leaves room for provisions Open market sale scheme (OMSS), he said “Of course, there will be some amount to that.”

Wheat purchases in the current season increased by 42.8 percent to 25.41 metric tons as of May 10 in the current season (April-June), compared to 17.8 million tons a year earlier, according to the latest official data. Official purchases in the country fell to a 15-year low of 18.79 million tons in 2022-23, prompting the government to ban exports that are still ongoing.

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Of the 28.7 mt target from three states – 13.2 mt in Punjab, 8 mt in MP, and 7.5 mt in Haryana – nearly 87 per cent has been achieved, so far.

Punjab showed a 26 percent increase in purchases at 11.93 million tons as of May 10 from last year’s level of 9.47 metric tons, Haryana registered a jump of 53.3 percent at 6.24 million tons from 4.07 million tons last year, and in Madhya Pradesh Wheat purchase rose 67.7 percent to 6.76 metric tons from 4.03 metric tons.

Official data showed that purchases in Uttar Pradesh, the largest producer of wheat, recorded a decline of 16.9 percent to 0.18 metric tons from 0.21 metric tons. But Rajasthan has contributed 0.3 metric tons to Central Pool’s stock so far, compared to just 758 tons in the same period last year.

MP advance range

Punjab, which had a share of more than 70 percent of total daily imports of wheat a week ago, reported 20 percent on May 10, while on the same day, 55 percent of total arrivals were reported from Madhya Pradesh. Experts said that since Uttar Pradesh and Rajasthan have little room amid aggressive private sector buying and near depletion of stocks in Punjab and Haryana, only MP offers some range.

“Now you will see a drop in purchases every day because maximum wheat, which could have come from the farmers of Punjab and Haryana, has already been bought by FCI and state agencies,” said Navneet Chitlangia, Senior Vice President, Roller Mills Association. India. He said that since the farmers are getting better prices from the MSP in UP and Rajasthan, they are showing less interest in selling their wheat to the government.

“Mills in southern states buy wheat from MP. So, the government will end up at 27-28 metric tons this year.