Wheat procurement surges, giving govt breathing room on food grain aid
New Delhi: The Centre is confident of maintaining wheat-rice allocations under its Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) this year, buoyed by strong wheat procurement — a politically sensitive development ahead of key state elections, according to two officials familiar with the matter.
Under PM-GKAY, 813.5 million beneficiaries receive 5 kg of free food grains each month—currently split as 2 kg wheat and 3 kg rice—translating to an annual wheat requirement of around 19.5 million tonnes (mt). Wheat procurement in the 2025–26 Rabi marketing season (April–June) has already crossed 30 mt, nearing the government's target of 33.37 mt, according to data from the Food Corp. of India (FCI) data.
'We have enough stock to meet the requirement, and it will continue through the year," said one of the officials cited earlier, adding that adequate stocks would also allow for market interventions if prices rise.
Read this | Import duty was slashed for edible oils, but what happened to retail prices?
As of 31 May, wheat stocks in the central pool stood at 37.99 million tonnes, comfortably above the buffer requirement of 27.58 million tonnes set for 1 July, according to official data.
The timing is crucial as assembly elections approach in Bihar this November, while legislative polls in West Bengal are due in March 2026, with subsidized food aid remaining a politically potent issue in both states.
The robust procurement comes after two years of shortfalls that forced the Centre to slash wheat allocations and replace them with rice—only restoring the original ratio in September 2024.
In May 2022, wheat quotas under the National Food Security Act (NFSA) were cut for 10 major states—Bihar, Jharkhand, Odisha, West Bengal, Delhi, Uttar Pradesh, Gujarat, Maharashtra, Madhya Pradesh and Tamil Nadu. These states collectively account for nearly 67% or 551 million of the 813 million poorest beneficiaries covered under NFSA. At that time, all beneficiaries received only rice for their 5 kg monthly entitlement.
This year's rebound is driven by improved production prospects. The government expects wheat output to rise 2% to a record 115.4 million tonnes (mt) in the 2024-25 Rabi season, mainly on account of higher acreage.
According to official data, procurement stood at 26.6 mt in 2024-25 and 26.2 mt in 2023-24, far above the sharp drop to 18.8 mt in 2022-23. The highest ever procurement remains 43.3 mt in 2021-22.
Read this | Changes in western disturbances may adversely affect food security, crop productivity
Much of this season's surge has come from Punjab (11.92 mt), Haryana (7.14 mt) and Madhya Pradesh (7.77 mt), where state governments offered additional bonuses over the Centre's minimum support price (MSP) of ₹2,425 per quintal. Madhya Pradesh announced a ₹175-per-quintal bonus, while Rajasthan, which procured 2.09 mt, offered ₹150.
Procurement from Uttar Pradesh, India's largest wheat producer, has reached 1.02 mt so far, against an initial estimate of 3 mt.
States like Bihar, Uttarakhand, Himachal Pradesh and Gujarat saw minor participation. Procurement remained nil in Maharashtra, Delhi and Jammu & Kashmir.
Arrivals are still being monitored, particularly in eastern states where procurement is typically backloaded, the second official said, adding that final numbers could rise in the coming weeks.
Price stability in focus
The procurement uptick also gives the government a buffer to contain price pressures, which remain a concern amid rising mandi prices in some regions.
Wholesale price index (WPI) inflation fell to a 14-month low of 0.39% in May, but wheat prices have shown modest firming. As of 18 June, the average retail price of wheat stood at ₹31.32 per kg, up 1.2% from a year earlier. Wheat flour (atta) prices rose 1.5% year-on-year to ₹36.65 per kg. Wholesale wheat prices rose 2.7% year-on-year to ₹28.20 per kg.
Also read | India tells WTO it won't lift wheat export ban
'Wholesale and retail wheat prices have remained firm in some states due to high mandi prices, but with strong procurement, market prices should ease soon," the second official added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
41 minutes ago
- New Indian Express
Surjewala slams Centre over Minister Priyank's US visit row
BENGALURU: The delay in granting travel clearance for IT/BT and RDPR Minister Priyank Kharge's official visit to the United States has sparked a political controversy, with Congress leaders accusing the Union Government of engaging in 'petty and vindictive' politics aimed at undermining Karnataka's global engagement efforts. AICC General Secretary and Karnataka in-charge Randeep Singh Surjewala slammed the Centre, calling the initial denial and subsequent approval of Priyank's travel request 'politically motivated.' 'This is sheer pettiness,' Surjewala said, highlighting Karnataka's significance as one of India's top economic contributors, with Rs 1.59 lakh crore in GST collections. He alleged that Priyank was being targeted not for his work but because he is the son of Congress chief Mallikarjun Kharge. 'Despite being a modernist and one of the most efficient ministers, he is being punished for his lineage,' Surjewala said. Echoing the charge, Karnataka Medical Education Minister Sharan Prakash Patil termed the delay a 'deliberate act' reflecting what he called 'PM Narendra Modi's continued Gujarat-centric mindset'. 'It is clear this was no oversight. Karnataka, like Tamil Nadu, is being unfairly targeted,' he said. Patil said that Karnataka stands alongside Maharashtra, Gujarat, and Tamil Nadu as one of the top destinations for global investment, yet faces repeated hurdles from the Centre. The controversy erupted after the Ministry of External Affairs denied Priyank's travel clearance without explanation. The approval came only on June 19, five days after his scheduled departure, following a press conference in which Priyank highlighted the timeline and questioned the motive behind the denial. Congress leaders have demanded a formal explanation, calling the episode a violation of the spirit of cooperative federalism. They argue that such interference not only undermines state-level initiatives to attract investment but also tarnishes India's image on the global stage.
New Indian Express
41 minutes ago
- New Indian Express
Mango crisis: Need robust post-harvest ecosystem in Karnataka
A sharp decline in market prices has pushed mango growers in the state into dire straits. The crisis worsens with every passing day as they are unable to recover even the input costs. While their patience is wearing thin, the state government is approaching the Centre for compensation. It is unclear how things will pan out in the coming days. In Karnataka, mango is one of the major horticultural crops, cultivated on approximately 1.39 lakh hectares. Supply chain disruptions have impacted the livelihoods of lakhs of farmers across several districts. A combination of factors – heavy rains impacting fruit quality, pest infestations, increased input costs, insufficient processing units, and restrictions imposed by Andhra Pradesh on the movement of mangoes – seems to have contributed to the current crisis. This is not the first time that mango growers have faced such a situation. In 2018, farmers in Kolar district – which grows around 10 lakh tonnes on 50,000 hectares – faced a similar plight. Unfortunately, that did not wake up the authorities to take long-term measures to develop enough processing units. Farmers continue to depend on pulp industries in neighbouring states Andhra Pradesh and Tamil Nadu. Andhra Pradesh's ban on entry of mangoes from other states hurt farmers in Kolar the most. Prices of Totapuri variety dropped from Rs 5,000 per tonne to around Rs 2,000 per tonne. In Kolar, Totapuri, a large green fruit used in the pulp industry, accounts for around 70 percent of the crop, while the remaining table varieties include Dasheri, Badami (also known as 'Alphonso of Karnataka'), Mallika, and Banganpalli. Even Karnataka Chief Minister Siddaramaiah, who expressed concerns over the AP government's move, admitted that Karnataka farmers depend heavily on industries in the neighbouring state. 'This abrupt and unilateral move has caused considerable hardship to mango growers in Karnataka, particularly those in the border regions who cultivate Totapuri mangoes in substantial quantities. These farmers have long relied on the robust linkages with Chittoor-based processing and pulp extraction units for marketing their produce,' the CM stated in his letter to AP CM Chandrababu Naidu. The government estimates that the disruption in the supply chain will directly impact the 'livelihoods of thousands of farmers' in the state. However, mango growers in Kolar put that number much higher at around 2 lakh in the district alone. Among others, Kolar, Chikkaballapur, and Bengaluru Rural are the major districts for mango cultivation.
New Indian Express
41 minutes ago
- New Indian Express
Permit factories to export sugar: Karnataka minister urges Centre
BELAGAVI: Karnataka Sugar, Sugarcane Development and Agriculture Marketing Minister Shivanand Patil has urged the Union Government to permit sugar factories to export sugar, emphasising that such a move is essential to safeguard the interests of sugarcane farmers. Addressing the media after attending the annual general meeting of S Nijalingappa Sugar Institute, Belagavi, Patil asserted that only if the Centre allows sugar exports can the huge dues owed to sugarcane farmers be settled. He said many factories are unable to pay the farmers as they have unsold sugar stocks, and they lack separate funds to clear pending bills. Allowing exports would enable these factories to generate revenue and clear farmers' dues, he said. Patil criticised the Centre's decision to permit the import of Tur dal despite adequate domestic production. 'As a result, the price of tur has fallen to Rs 90 per kg. The Union Government must carefully consider what commodities need to be imported and what should be permitted for export,' he said. Patil urged the Centre to take a more thoughtful approach to prevent such distress situations in the future.
