Thursday 20 02 2025 01:43:32 AM

Office Address

123/A, Miranda City Likaoli Prikano, Dope

Phone Number

+0989 7876 9865 9

+(090) 8765 86543 85

Email Address

info@example.com

example.mail@hum.com

India’s wheat procurement unlikely to be hit by higher market price
Despite wheat prices ruling high currently in the market, the government is optimistic about good procurement when the rabi marketing season begins.
Dr.G.R.Balakrishnan Jan 29 2025 Exim & Trade News

India’s wheat procurement unlikely to be hit by higher market price

It is view is based on the 2023-24 purchases, which was 40 per cent higher than the previous season despite higher inflation of 17 per cent just before the harvest began. The procurement by the Food Corporation of India and other agencies dropped to 16-year low of 188 lakh tonnes (lt) in 2022-23.

“The wheat inflation was much higher during January-March of 2023 compared to the current rate of increase. Still, the procurement crossed 260 lt. Besides, the bonus (over and above the MSP) announced by States such as Madhya Pradesh and Rajasthan may also help in purchasing a good amount of wheat in coming season,” said an official source.

Union Food Minister Pralhad Joshi has held two rounds of discussions with food ministers of five key producing States — Uttar Pradesh, Madhya Pradesh, Bihar, Gujarat and Rajasthan. Union Food Secretary Sanjeev Chopra is likely to hold a meeting next month with officials of all wheat-growing States to finalise the estimate of procurement and prepare an action plan, sources said.

Last year, these five States had a combined share of 26 per cent of 266.05 lt of wheat procured by the FCI. The government set a target to buy 162.1 lt from these five States in 2024. However, it bought nearly 70 meeting 43 per cent of target.

The Centre has asked these five governments to procure at least the quantity required under the public distribution system in their respective State. The MSP of wheat has been set at ₹2,425/quintal, 6.6 per cent higher than last year. The all India average retail price of wheat is ₹35.23/kg this month, which is 4.4 per cent higher than ₹33.76/kg a year ago and that of atta (wheat flour) ₹40.28/kg, up by 3.5 per cent from ₹38.93/kg, according to data from the Consumer Affairs Ministry. Officials said the current wheat inflation is even less than the hike given in MSP. In January, monthly retail inflation in wheat was 17.1 per cent and in atta was 19.8 per cent while in February, 2023, it was 16.9 per cent in wheat and 19.2 per cent in atta (wheat flour). But in March 2023, wheat inflation dropped to 12.3 per cent and in atta, it slipped to 15.8 per cent.

“As the new wheat crop starts arriving in mandis from March, one has to wait if prices will cool down from the current level and even if there is a marginal drop, the government may hope for a good procurement,” an industry expert said and added that the next 1-2 months are critical for the crop due to the possibility of higher than normal temperature.

Sowing data show that wheat acreage was 1.38 per cent higher at a record 324.38 lakh hectares (lh) in the current rabi season (until January 27) compared with 315.63 lh a year ago. The acreage was 318.33 lh last year. The production target has been set at 115 million tonnes (mt) in current year, up from a record 113.29 mt during the 2023-24 crop year (July-June).

Related News