Exceeding Annual Procurement Targets

In the current season, wheat procurement in India has soared past 19.6 million tonnes (mt), surpassing the annual requirement of 18.6 mt set for various welfare schemes, including the National Food Security Act. Two years ago, the requirement stood at 22.5 mt but was subsequently reduced due to lower wheat production, with rice being substituted in the allocation.

Challenges in Meeting Procurement Goals

Despite challenges, the agricultural sector has shown remarkable resilience. Efforts to procure at least 31.0 (mt) during the 2024-25 marketing year (April-March), driven by dwindling stocks that reached a 16-year low. Challenges persist in states like Uttar Pradesh, Rajasthan, and Bihar, where substantial quantities were anticipated, but the sector remains steadfast in its pursuit of meeting procurement goals.

Lower purchases in Madhya Pradesh, where the target is 8.0 mt, are less concerning, considering its capacity to contribute up to 13.0 mt to the Central Pool despite previously outperforming Punjab in terms of contributions.

Government's Procurement Progress

A government official reported that procurement operations are proceeding smoothly, with 19.6 million tonnes already acquired, surpassing the annual requirement of 18.6 million tonnes for schemes like Prime Minister Garib Kalyan Anna Yojana (PMGKAY) and other welfare programs.

Experts suggest that pan-India wheat production may exceed 115 mt this year, surpassing the government's second advance estimates of 112.02 mt. This potential increase in production, driven by improved productivity among a more significant number of farmers, particularly in Punjab. Here the average productivity has risen by 7.5 quintals per hectare, reaching about 5.3 tonnes per hectare, instills optimism about the future of food security in India.

In conclusion, India's wheat procurement has exceeded government requirements, demonstrating the resilience of the agricultural sector. Despite challenges in states like Uttar Pradesh, Rajasthan, and Bihar, efforts to meet procurement goals remain steadfast. The lower purchases in Madhya Pradesh are less concerning, given its capacity to contribute significantly to the Central Pool. With wheat production potentially exceeding 115 million tonnes this year, driven by improved productivity, particularly in Punjab, the outlook for food security in India appears optimistic. Overall, the government's procurement progress reflects a positive trajectory in ensuring welfare schemes' fulfillment and bolstering food security initiatives.