India�s Wheat Procurement Surges 92% Amid Early Start, Government Support
India�s wheat procurement has witnessed a significant boost this season, soaring 92.3% year-on-year to 83.58 lakh tonnes (LT) as of April 16, 2025. The sharp rise is attributed to an early start in procurement operations, proactive state-level support, and relaxed quality norms in key regions. Madhya Pradesh has emerged as the top contributor, accounting for 40.08 lt of the total procurement. A major driving factor has been the state government's incentive of ₹175 per quintal over and above the central Minimum Support Price (MSP) of ₹2,425/quintal. This bonus has played a crucial role in accelerating farmer participation in government procurement channels. Widespread Gains Across States Other states have also reported strong progress: Haryana: Procurement rose by 67% to 29.89 lt. Rajasthan: Reached 4.8 lt, aided by relaxed quality norms allowing up to 20% shriveled grains. Punjab: Traditionally slow post-Baisakhi, recorded 5.29 lt�up sharply from just 74,144 tonnes last year. Uttar Pradesh is also contributing steadily, although detailed figures are yet to be confirmed. Optimistic Targets, Bumper Crop in Sight The central government has set a procurement target of 312.7 LT for the season. Based on current momentum and favorable yield reports, officials anticipate achieving 280�290 LT by early May. This would mark a significant rebound after three years of falling short�most recently in 2024, when procurement hit only 266.05 lt against a target of 373 lt. Concerns Remain on Ground-Level Execution Despite the overall positive trend, farmer groups have raised concerns over distress sales and restricted movement of wheat in some areas. Limited private sector participation is also skewing market dynamics and leaving procurement heavily reliant on government channels. Wheat Production Set to Surpass 115 Million Tonnes Adding to the optimism, the Agriculture Ministry projects wheat production for the 2024�25 crop year to exceed 115 million tonnes, suggesting a potential bumper harvest that could ease supply-side pressures and curb inflation on essential food grains. Outlook India's renewed procurement strength signals a move back toward self-sufficiency in wheat, bolstered by favorable government policies, improved crop output, and better market outreach. While challenges remain at the grassroots level, the season�s trends reflect a strong recovery in the country�s wheat supply chain.