India's Wheat Procurement Soars 92%, Eyes Record High by Amit Gupta, Kedia Advisory

India’s wheat procurement surged by 92.3% to 83.58 lakh tonnes (lt) as of April 16, 2025, boosted by early procurement and increased state support. Key contributors include Madhya Pradesh, Rajasthan, and Haryana, with MP leading due to a state bonus. The Centre aims to procure 312.7 lt this season, with an optimistic outlook of reaching 280–290 lt by May. Despite relaxed quality norms and full procurement at centers, farmer concerns over distress sales persist. The procurement improvement follows three years of missed targets, indicating a rebound in self-sufficiency efforts. Wheat production is also projected to surpass the 115 million tonne target in the 2024–25 crop year.
Key Highlights
* Wheat procurement up 92.3% year-on-year to 83.58 lt.
* MP leads with 40.08 lt aided by a Rs 175/quintal bonus.
Procurement improved in Rajasthan, Punjab, Haryana, and UP.
* Quality norms relaxed in Rajasthan to boost purchases.
* Target set at 312.7 lt; expected to reach 280–290 lt.
India’s wheat procurement has recorded a sharp rise this season, jumping 92.3% year-on-year to 83.58 lakh tonnes (lt) as of April 16, 2025. This uptick comes amid an early start to procurement and active government support in key states. Prices at the procurement centers have remained firm, with the Minimum Support Price (MSP) set at ?2,425 per quintal, while Madhya Pradesh has further sweetened the deal with an additional ?175 per quintal bonus, driving procurement there to 40.08 lt.
Other states have also shown impressive performance. Rajasthan’s purchase rose significantly to 4.8 lt after the Centre relaxed fair average quality (FAQ) norms, allowing up to 20% shriveled grains. Haryana saw a 67% increase to 29.89 lt, and Punjab, traditionally a late starter post-Baisakhi, reached 5.29 lt—up from just 74,144 tonnes last year.
The central government, targeting 312.7 lt for the season, expects procurement to reach between 280–290 lt by early May, buoyed by reports of higher yields. This would mark a strong comeback after three consecutive years of missed targets, including 266.05 lt against a 373 lt target last year.
Despite the promising numbers, farmer unions have voiced concerns over distress sales and restricted wheat movement, pointing to gaps in execution on the ground. Private participation remains low, further skewing the market dynamics.
The Agriculture Ministry has projected wheat production to exceed 115 million tonnes in the 2024–25 crop year, reinforcing hopes for a bumper season.
Finally
With favorable procurement trends and high yield expectations, India moves closer to restoring wheat self-sufficiency and easing inflationary pressures on essential cereals.
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