Government raises wheat procurement target by 15% as farmers turn to MSP

NEW DELHI: Government has increased the wheat procurement target to 34.5 million tonnes (MT), about 15% higher than what it had set for the current Rabi marketing season. This comes amid indications that more farmers are likely to opt to sell their produce to the government at MSP since mandi prices are lower.

Recently, the governments of Madhya Pradesh, Uttar Pradesh, Rajasthan and Bihar sought that the Centre increase wheat procurement. While government usually revises targets close to the end of the procurement period, this year the decision was taken early. Government on Friday also urged flour millers to purchase wheat directly from the market instead of relying on sales by the Food Corporation of India (FCI).

Government has so far purchased 16.4 MT of wheat in the ongoing procurement season.

Against the MSP of Rs 2,585 per quintal, the all-India average mandi price of wheat on April 22 was Rs 2,572. The average farmgate price in UP was Rs 2,439 per quintal and Rs 2,416 in MP.

At the release of “Annual Wheat Survey Report 2026” prepared by Roller Flour Millers Federation of India, food secretary Sanjeev Chopra said that at the request of state govts, procurement targets have been raised in MP (from 7.8 MT to 10 MT), UP (1 MT to 2.5 MT), Rajasthan (2.1 MT to 2.3 MT), Bihar (18,000 tonnes to 1,80,000 tonnes) and Uttarakhand (1,000 tonnes to 50,000 tonnes). Government has relaxed procurement norms for four states, except Uttarakhand, which saw crop damage due to adverse weather.

Chopra said they estimate wheat production would be in the range of 110–120 MT following damage from unseasonal rain and hailstorms in key growing states. The flour millers' federation has estimated wheat production of 110 MT.

The agriculture ministry earlier estimated the production at 120.2 MT, before the adverse weather conditions.

The annual survey report said that there was moderate to high impact on the wheat crop in nine states — Punjab, West Bengal, UP, Haryana, Bihar, MP, Rajasthan, Gujarat and Maharashtra — due to unseasonal rain and hailstorm between Feb and April.
Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.