Wheat procurement near 26 mt, MP only hope to augment Central Pool supplies

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With wheat purchases reaching 25.9 million tons as on May 15, total purchases appear to be between 26 and 27 million tons this year. The wheat procurement drive in Punjab, Uttar Pradesh and Madhya Pradesh is set to end within a month. There could be a surplus of about 8 metric tons against annual demand under the Food Security Act and other welfare schemes, which could help the government make provisions for intervention in the market.

Last week, Food Corporation of India Chairman Ashok K Meena said the purchases could amount to around 27 metric tons, while the government’s requirement is 18.4 metric tons, excluding buffer standards. .

Wheat purchases in the current season increased by 43.6 percent to 25.9 million tons as of May 15 in the current season (April-June), compared to 18.04 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.

Of the target of 28.7 mt from three states – 13.2 mt in Punjab, 8 mt in MP and 7.5 mt in Haryana – nearly 90 per cent has been achieved, so far.

Haryana purchase ends

Purchases in Haryana ended on May 15 at 6.29 metric tons compared to 4.07 metric tons a year earlier, up 54.5 percent, while the target was 7.5 metric tons. Of the total quantity purchased from the state, only 1,339 tons were of reasonable medium quality (FAQ) while the remainder were subject to soft specification (URS).

Punjab showed a 26 percent increase in purchases at 12.05 million tons as of May 15 from last year’s level of 9.56 million tons, while in Madhya Pradesh it was up 67.8 percent at 6.98 million tons from 4.16 million tons.

Official data showed that purchases in Uttar Pradesh, the largest producer of wheat, recorded a decline of 16.9 percent at 0.19 metric tons from 0.24 metric tons. But Rajasthan has contributed 0.37 metric tons to Central Pool’s stock so far, compared to just 758 tons in the same period last year.

Of the 1,35,632 tons purchased for Central Pool on May 15, up to 98,840 tons were purchased for MP, with hope still for some increase in purchases, officials said, adding that 19 could be purchased. , only 372 tons in Punjab at the same time. day. “Wheat prices everywhere are higher than MSP and even farmers avoid the standard rate at their doorstep without the hassle of bringing their grain to the market yard or buying centre. Only those low quality grains are available at less than $2,125/quintal (MSP).