Wheat procurement crossed 263 lakh tonnes, UP emerged as private procurement hub due to lower prices

According to the latest data, the government has procured 263.19 lakh tonnes of wheat in the ongoing Rabi Marketing Season (2025-26). Punjab leads with 106.83 lakh tonnes, followed by Madhya Pradesh with 69.24 lakh tonnes and Haryana with 67.45 lakh tonnes.

Harvir Singh

Published: May 3, 2025 - 18:49 Updated: May 3, 2025 - 18:58

Wheat procurement crossed 263 lakh tonnes, UP emerged as private procurement hub due to lower prices

Photo by Swastik Arora on Unsplash

During the ongoing Rabi Marketing Season (2025–26), over 263 lakh tonnes of wheat have been procured across the country. With this year’s bumper harvest, government procurement is expected to cross 300 lakh tonnes. With a bumper wheat harvest this year, the government expects procurement to exceed 300 lakh tonnes, surpassing last year’s 266 lakh tonnes. The Centre has set a target of 332.7 lakh tonnes for this season.

As per the Food Corporation of India (FCI) data up to May 1, 2025, 263.19 lakh tonnes of wheat have been procured. A notable trend this season is the rise of Uttar Pradesh (UP) as a key hub for private wheat purchases. This is largely due to Madhya Pradesh offering a ₹175 per quintal bonus, raising the effective procurement price to ₹2,600 per quintal, while the Minimum Support Price (MSP) set by the Centre is ₹2,425 per quintal. In UP, private buyers are purchasing wheat at prices ranging from ₹2,375 to ₹2,450 per quintal, making it attractive for large companies and flour mills.

As per the latest data, Punjab leads in total wheat procurement with 106.83 lakh tonnes, followed by Madhya Pradesh with 69.24 lakh tonnes and Haryana with 67.45 lakh tonnes. Other states with significant procurement include Rajasthan (11.65 lakh tonnes), Himachal Pradesh (2058 tonnes), Uttarakhand (142 tonnes), Bihar (14291 tonnes), and Gujarat (2787 tonnes).

Industry sources report that major wheat-trading companies and flour mills are sourcing wheat from Uttar Pradesh, where prices range between ₹2,375–₹2,450 per quintal.

Procurement in Uttar Pradesh

Uttar Pradesh remains the country’s largest wheat-producing state, with an estimated production of 357 lakh tonnes out of the national estimate of 1,154 lakh tonnes. According to the Uttar Pradesh Food Department, about 8.32 lakh tonnes of wheat have been procured by the government in the state as of May 3. The central government has set a procurement target of 30 lakh tonnes for Uttar Pradesh, while the state government had prepared to procure 60 lakh tonnes.

UP Farmers Missing Out on Better Prices

The Uttar Pradesh government is making efforts to boost wheat procurement, while indirect measures are reportedly discouraging private purchases. Restrictions on rail rakes for private companies have forced private traders to use trucks for transportation, raising costs. Without such restrictions, farmers in UP could have received better prices for their wheat.

This raises a key question: if farmers in UP had an opportunity to get better prices above the MSP, why was this opportunity denied? Neighbouring states like Madhya Pradesh and Rajasthan, both ruled by the same party as UP, are offering bonuses of ₹175 and ₹150 per quintal, respectively. Yet farmers in UP have received neither a bonus nor the full benefit of private procurement.

This year, farmers in Uttar Pradesh had a rare chance to earn more than MSP because companies and mills—who usually buy from Madhya Pradesh—turned to UP due to the higher effective price in MP. Most major companies and traders are now buying from UP. Exporters and flour mills from southern India are also sourcing wheat from Uttar Pradesh.

Industry Insights

According to Rural Voice’s discussions with industry sources, last year’s limited open-market wheat sales by the government kept prices high. To avoid risks, companies are procuring early this season. While private procurement was earlier concentrated in areas like Shahjahanpur and Hardoi, this year, regions like Gonda, Badaun, and Allahabad are seeing increased activity. Local traders are facilitating purchases for southern mills and large companies.

This season, procurement targets have been set at 124 lakh tonnes for Punjab, 75 lakh tonnes for Haryana, and 80 lakh tonnes for Madhya Pradesh. Targets for Bihar, Gujarat, and Uttarakhand are 2 lakh tonnes, 1 lakh tonne, and 0.5 lakh tonne, respectively. Current trends suggest that Punjab, Haryana, and Madhya Pradesh are likely to meet their targets, while other states may fall short.