For the third consecutive year in a row, the Government of India will miss its wheat procurement target, despite bumper wheat production in the country in marketing season 2024-25, a report published in The Times of India reveals.

India’s wheat production has almost achieved its target of 112 million tonnes (1,120 lakh MT), but the centre’s procurement is much lower than its target in the current season. According to the TOI report, there is a shortfall of over 107 lakh metric tonnes (LMT) in wheat procurement by the centre against the estimated target, even as the wheat procurement season is about to end.

As of June 13, the government has procured 265.33 LMT of wheat in the central pool, when the procurement target was set at 372.90 LMT.

Similarly in last two seasons, the government fell short of the target in wheat procurement. In 2022-23, against a set target of 440 LMT, the centre merely achieved 42 per cent of its target by procuring only 187 LMT. In the 2023-24 season, the government set a target to procure 341 LMT but ended up buying only 262 LMT.

In the current season, wheat procurement for the national pool has ended long time ago in most of the big wheat producing states. However, in Uttar Pradesh, the procurement will continue till June 15 while in Madhya Pradesh and Rajasthan, the procurement process will run till June 30.

The TOI report says that farmers’ forum and experts have attributed the shortfall to private traders procuring wheat stock in large quantities.

Farmers’ Forum Bharat Krishak Samaj chairman Ajay Vir Jakhar told the newspaper that whatever be the wheat production estimates, “there is shortfall in procurement target.”

“The shortfall is due to private traders procuring wheat stock in large quantities. There is nothing wrong in it as the market should be encouraged to deliver better prices to farmers,” he added.

MS Sidhu, former senior economist at Punjab Agricultural University, Ludhiana said, “Private traders anticipating spurt in prices purchased large quantities of wheat above the MSP in MP, UP, and Rajasthan,” quoted TOI. 

In the current season, centre’s wheat procurement is critical for India’s food security, especially after having missed the targets from the past two years. 

In March this year, Food Corporation of India (FCI)’s wheat buffer stock in government godowns, reached a seven-year low. FCI’s wheat stock was marginally above the buffer limit or emergency reserve of about 7.6 million tonnes.  

Owing to the massive shortfall in centre’s procurement, the report suggests that government is contemplating allowance of import of three-five million tonnes of wheat after 7 years.

The report further reveals that the highest procurement as of June 13, took place in Punjab, where 124.52 LMT (46.9 per cent) of wheat has been procured out the national total of 265.33 LMT, still registering a shortfall from the estimate (target) of 130 LMT.

In Haryana, 71.15 LMT (26.8 per cent) of wheat procurement took place against the target of 80 LMT. Combinedly in two the state, 195.67 LMT (73.76 per cent) wheat has been procured for the national pool.

Among the other states, MP contributed 48.36 LMT against a target of 80 LMT. UP contributed 9.27 LMT against the target of 60 LMT, Rajasthan has contributed 11.86 LMT against a target of 20 LMT, Bihar has contributed 10,065 MT against a target of 2 LMT, and HP contributed 2,841 MT against a target of 10k MT.

Uttarakhand has contributed 1,273 MT against a target of 50k MT while J&K and Gujarat have contributed nil against a target of 20k and 10k MT, respectively.