Early Wheat Buying Begins in Rajasthan; Madhya Pradesh Sees Higher Initial Volumes

India has commenced wheat procurement earlier than usual this season, with approximately 900 tonnes already purchased in Rajasthan. Official data from the procurement portal reveals no recorded purchases yet in Madhya Pradesh; however, industry sources report around 17,000 tonnes procured since March 15, with Rajasthan's unofficial total surpassing 3,000 tonnes since March 10.

Procurement Targets and Bonus Offers

The focus of wheat procurement activities is primarily on Madhya Pradesh and Rajasthan due to their substantial procurement targets of 6 million tonnes and 2 million tonnes, respectively. Both state governments have announced additional bonuses over the minimum support price (MSP) of USD 0,29/kg (₹2,425/quintal).

Wheat Arrival and Procurement Norms

The central government allowed early procurement in regions where wheat has arrived ahead of schedule. According to Agmarknet portal data, total wheat arrivals at agricultural market yards (mandis) from March 10 stand at 974,000 tonnes, with Madhya Pradesh reporting 662,000 tonnes and Rajasthan about 70,000 tonnes. Notably, experts caution that these figures might include previously stored stocks rather than entirely fresh crops.

Relaxation of Wheat Quality Norms in Rajasthan

Responding to the Rajasthan government’s request, the Centre relaxed wheat quality norms effective retrospectively from March 10. These relaxed specifications address challenges caused by early heatwaves and rainfall impacting grain quality.

Conditions for Relaxed Procurement

The central government requires Rajasthan to separately store wheat procured under relaxed norms and mandates that this grain must be consumed within the state itself. Additionally, Rajasthan bears sole responsibility for any deterioration of wheat quality during storage and any related financial or operational implications.