India's Wheat Procurement Surges: 2.08 Million Tons Bought from Farmers Since March 15

India has initiated its wheat purchase season on a strong note, buying 2.08 million tons of wheat from farmers so far since March 15, a 44.4% rise over the corresponding period of last year during which it purchased 1.44 million tons. This solid procurement indicates that there is a good crop harvest and will lead to the buildup of India's wheat stocks, lessening import requirements.

 

Important Points:

 

Procurement Details: The Food Corporation of India (FCI) has largely procured early wheat varieties from Madhya Pradesh, with procurement likely to pick up pace as harvests from major states such as Haryana, Punjab, and Uttar Pradesh come into the market.

 

Market Impact: The higher procurement is due to improved prices paid to farmers, such as a bonus by Madhya Pradesh over and above the central government's minimum support price (MSP) of ₹2,425 per quintal.

 

Production Estimates: India's wheat harvest is expected to hit a record 115.3 million tons during the 2024-25 crop year, rising 2% from last year's level, the Agriculture Ministry says.

 

Government Targets: The government is looking to buy 31 million tons of wheat for the 2025-26 rabi marketing season, with the top contributions likely to come from Punjab, Haryana, and Madhya Pradesh.

 

This robust procurement begin marks India's attempt to assure food security and stabilize wheat prices in the country.

 

Source: Reuters, Indian Express, Financial Express