India`s Wheat Procurement Rises 14%, Nears 30 Million Tonnes by Amit Gupta, Kedia Advisory
India’s wheat procurement for the 2024-25 season has surged 14.4% to 29.46 million tonnes, mainly driven by higher purchases in Madhya Pradesh and Rajasthan. Despite lower procurement in Punjab and Haryana due to increased private buying and farmer stockpiling, other states compensated with significant contributions. Private players actively participated, offering higher-than-MSP prices amid scarcity. Wheat arrivals in mandis rose 26% in major producing states, with Madhya Pradesh nearing its revised 8 mt target. The Food Corporation of India (FCI) auctions saw record bids, indicating tight supply. Meanwhile, Uttar Pradesh lags behind its target. The Agriculture Ministry projects a record 115.43 mt wheat output for 2024-25.
Key Highlights
# India’s wheat procurement rises 14.4% to 29.46 mt.
# Punjab and Haryana record lower government procurement due to private buying.
# Madhya Pradesh sees 69% rise in procurement; Rajasthan nearly doubles.
# Private players offer high bids, exceeding ?3,100/quintal in auctions.
# Wheat arrivals in mandis up 26% across five key states.
India’s wheat procurement for the 2024-25 marketing season has risen significantly, reaching 29.46 million tonnes—a 14.4% increase from last year’s 25.76 million tonnes. This surge is largely driven by increased procurement in Madhya Pradesh and Rajasthan, where state governments offered incentives above the MSP of ?2,425/quintal.
In stark contrast, Punjab and Haryana—the traditional procurement giants—witnessed lower volumes. Punjab ended at 11.93 mt, down 3.4% year-on-year, while Haryana closed at 7.08 mt, slightly below last year’s 7.1 mt. The dip is attributed to aggressive private sector buying, millers building inventory, and farmers holding grain anticipating better prices, influenced partly by uncertainty in the India-Pakistan region.
Supporting this price trend, FCI’s open market auctions under OMSS saw average prices around ?2,800/quintal, with bids exceeding ?3,100/quintal in some regions due to tight supply and high demand. Private traders and processors, previously reliant on government stocks, are now securing wheat directly from farmers and through commission agents.
Mandis across five major producing states reported 26% higher arrivals between March 15 and May 15. Madhya Pradesh procurement touched 7.78 mt, up 69% from last year, with operations continuing till June 30. Rajasthan procurement doubled to 1.65 mt, nearing its 2 mt target. Uttar Pradesh, however, has struggled, nearing only 1 mt against its 3 mt goal.
Amid these developments, the Agriculture Ministry has projected a record wheat harvest of 115.43 mt for the 2024-25 crop year.
Finally,
India’s wheat procurement outlook remains robust despite regional variances, supported by high private demand, attractive auction prices, and a record production estimate from the Agriculture Ministry.
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