From the beginning of the month, the food ministry has asked traders, wholesalers, retailers and processors across states to declare wheat stock weekly. This move follows the government lifting stocking limits on the grain on March 31, 2025.
With a fast arrival of wheat in mandis on the prospects of a robust crop, mandi prices of milling quality of grain have fallen significantly in the last one month, traders said.
The market prices of wheat are currently in the range of Rs 2450/quintal – Rs 2600 / quintal at present from Rs 3200 – Rs 3400 / quintal prevailed a month back.
Trade sources said that wheat prices are likely to remain around the minimum support price (MSP) of Rs 2425/quintal for the current season as arrivals are expected to peak further in the next week or so.
Officials said that harvesting of wheat is currently at its peak in Punjab, Haryana and Uttar Pradesh, so far 13.48 MT of grain has arrived in mandis till Thursday according to the food ministry against reported arrivals of 6.59 MT last year during the same period.
They said softening of prices would bring down inflation in wheat which was reported at 9% in March, 2025 on year.
“Wheat output is projected to be higher than last year while the quality of grain currently arriving in the mandis is good,” Navneet Chitlangia, president, Roller Flour Millers Federation of India, told FE.
The wheat processing industry had projected wheat output in the current year at 110 million tonne (MT) against 105-106 MT in the previous year.
The agriculture ministry has estimated wheat production at a record 115.3 MT during 2024-25 crop year (July-June), an increase of 2% over the previous year. Wheat sowing this season has increased to 32 million hectare (Mha) against 31.56 Mha last year and higher than the average sown area of the last five year.
Traders say this season the government would be able to purchase sufficient quantities of grain from the farmers for meeting supplies for the public distribution system and open market sale.
Govt’s wheat purchase crossed 8 MT
The government’s wheat purchase from the farmers at minimum support price (MSP) in the 2025-26 market season (April-June) has started on brisk note with agencies have purchased over 8.35 MT of wheat in the key producing states including Madhya Pradesh (4 MT), Haryana (2.98 MT), Punjab (0.52 MT) and Rajasthan (0.48 MT), which 92% more than volume of purchase in the previous marketing year.
Trade sources said that the government is likely to meet the wheat procurement target of 31 MT for the marketing season after 2021-22 season. In the last three years, MSP purchases of wheat have been below the target.
After achieving a record procurement 43.3 MT in 2021-22 season, the purchase by the government agencies under the MSP operations fell to record low of 18.8 MT in 2022-23 season because of lower output.
However, subsequently it has risen by around 40% to 26.2 MT and 26.6 MT in 2023-24 and 2024-25 marketing year respectively.
At present, FCI has 15.56 MT of wheat stock against the buffer of 7.46 MT for April 1.
Madhya Pradesh and Rajasthan government has announced a bonus payment of Rs 175/quintal and Rs 150/quintal respectively over the MSP of Rs 2425/quintal announced for the 2024-25 marketing season.
FCI supplies around 18.4 MT of grain for social welfare schemes and any additional procurement in the current season would help it carry out open market sales to curb possible spikes in prices and keep a buffer.
