The Indian government has reported smooth progress in the procurement of wheat and rice during the current crop year. The procurement of wheat has surpassed the total procurement of the previous year and is benefiting farmers. The relaxation of quality specifications for wheat procurement due to untimely rains has also helped prevent distress sales.
The procurement of wheat and rice in India during the 2023-24 crop year is progressing smoothly. The procurement of wheat has already surpassed the total procurement of the previous year and is benefitting farmers. The major contributing states are Punjab, Haryana and Madhya Pradesh. This year, the Indian government relaxed the quality specifications for wheat procurement in view of untimely rains leading to luster loss, reducing the hardship of farmers and preventing distress sales. Rice procurement is also progressing well. The current combined stock of wheat and rice in the Central Pool is over 510 LMT, which indicates that the nation has ample food grain reserves to meet its requirements.
Important points on procurement of wheat and rice in India during 2023-24
- As of April 26th, 2023, wheat procurement during RMS 2023-24 has surpassed the total procurement of RMS 2022-23, with 195 LMT already procured.
- The three major contributing states for wheat procurement are Punjab (89.79 LMT), Haryana (54.26 LMT) and Madhya Pradesh (49.47 LMT).
- The Indian government eased the quality standards for wheat procurement owing to unseasonal rainfall.
- Rice procurement during the kharif crop of KMS 2022-23 has resulted in a total procurement of 354 LMT, with an estimated 106 LMT to be procured during the Rabi crop of KMS 2022-23.
- India’s wheat and rice stocks exceed 510 LMT, meeting food grain needs.
- The MSP outflow for wheat procurement has been Rs. 41148 crores, benefiting 14.96 lakh farmers.
The successful procurement of wheat during RMS 2023-24 is a significant achievement for the Indian government and the efforts have largely benefitted the farmers. The government’s decision to grant relaxation in quality specifications and allow procurement centers at the village/panchayat level has contributed to the success. Rice procurement is also on track and the ample stock of wheat and rice in the Central Pool meets the country’s food grain needs.