Wheat Procurement Crosses 294.59 Lakh Tonnes, Achieving 332 Lakh Tonne Target Seems Unlikely
Although procurement will continue in some states until June 30, the major procurement in key states like Haryana and Punjab was scheduled only until May 15. As a result, achieving the target of 332 lakh tonnes in government procurement this season seems unlikely
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In the ongoing Rabi Marketing Season (2025–26), government wheat procurement is expected to fall short of the target. According to data from the Food Corporation of India (FCI), as of May 15, 2025, government procurement of wheat stood at 294.59 lakh tonnes. Although procurement will continue in some states until June 30, the major procurement in key states like Haryana and Punjab was scheduled only until May 15. Therefore, the extended procurement period in Madhya Pradesh, Uttar Pradesh, and Rajasthan is unlikely to significantly impact overall numbers.
As a result, achieving the target of 332 lakh tonnes in government procurement this season seems unlikely, especially since wheat prices in most states are currently higher than the Minimum Support Price (MSP) of Rs 2,425 per quintal fixed for this season.
The highest procurement was recorded in Punjab at 119.32 lakh tonnes, although this is below the target of 124 million tonnes. Procurement in Punjab was limited to May 15. Madhya Pradesh ranked second with 77.75 lakh tonnes against a target of 80 lakh tonnes. Although the procurement deadline in Madhya Pradesh has been extended to June 30, 2025, the pace of procurement has slowed. Haryana came third with 70.81 lakh tonnes against a target of 75 lakh tonnes. Like Punjab, Haryana’s procurement period also ended on May 15.
In Uttar Pradesh, India’s largest wheat-producing state, procurement stood at only 9.99 lakh tonnes as of May 15, far short of the central government’s target of 30 lakh tonnes and the state government's target of 60 lakh tonnes. It is expected that procurement in the state will slightly exceed 10 lakh tonnes by the time the season ends on June 30, 2025.
In Rajasthan, 16.46 lakh tonnes of wheat have been procured against a target of 20 lakh tonnes. The procurement window here also extends to June 30, 2025. In other states, wheat procurement has been negligible. Notably, there has been no procurement in Delhi, Jammu & Kashmir, and Maharashtra.
This year, favorable weather in most wheat-producing states has led to improved production. Madhya Pradesh offered a bonus of Rs 175 per quintal on government procurement, while Rajasthan gave a bonus of Rs 150 per quintal. Private traders and companies made substantial purchases from Uttar Pradesh and Punjab. Wheat market prices in most states are currently running above the MSP.
