The government has decided to increase the grain procurement target for the 2024-25 season amid expectations of record wheat output. The target is set to be around 30-32 million tonnes, up from the 26.2 million tonnes purchased under the minimum support price (MSP) operations.
This move is aimed at replenishing the Food Corporation of India’s (FCI) stock, which is currently at an eight-year low. The main wheat-producing states, Punjab and Madhya Pradesh, are estimated to contribute 13 million tonnes and 80 million tonnes to the central pool wheat stock for the upcoming marketing season.
The government has also announced an MSP of Rs 2275/quintal for the next season, an increase of Rs 150/quintal from the previous season. The procurement target may be revised depending on market arrivals and purchases. Additionally, the government is focusing on states where wheat procurement is not meeting production levels. Uttar Pradesh, Rajasthan, Bihar, Madhya Pradesh, Punjab, and Haryana will start MSP operations at different dates to support farmers.
Furthermore, the government has halted open market sale of wheat, which had been ongoing through weekly e-auctions, in efforts to maintain sufficient stock for future sales. Wheat inflation has decreased due to improved supplies from FCI’s aggressive selling in the open market. The wheat output for the 2023-24 crop year is expected to reach a record 114-115 million tonnes, with 85% of the area under climate-resilient seed varieties.
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