The government has fixed a lower wheat procurement target in the range of 30-32 million tonnes (mt) during the 2024-25 rabi marketing season, according to the food ministry.
The lower target has been fixed despite the farm ministry’s forecast of record wheat production of 112.01mt in the 2023-24 crop year (July-June).
The target was fixed after deliberations with state food secretaries in a meeting chaired by Union food secretary Sanjeev Chopra in the national capital on Wednesday.
“After deliberations, the estimates for wheat procurement during the ensuing rabi marketing season of 2024-25 were fixed in the range of 30-32 million tonne,” the ministry said in a statement.
Rakesh Tikait, Bharatiya Kisan Union (BKU) leader, said “If the government does not procure the grains, private traders would do so. What we are asking is a legal guarantee to the minimum support price”.
Hinting that the lower procurement target could be due to the farmers’ agitation, he said: “If they think by procuring lower grain they can scuttle the movement, they are wrong.
Lower procurement would only hit them as they have to meet the anna yojana (free foodgrain scheme).”
Analysts said the lower procurement could be due to a lack of confidence in the production estimates. It is still being determined how the El Nino factor will play out in the coming weeks, which can impact output.
In the 2023-24 season, the government procured about 26.2mt of wheat against the target of 34.15mt. In 2022-23, procurement was only 18.8mt against the target of 44.4mt.
The procurement was lower because of a fall in production.
Recently, the food secretary had said the farmers’ protest at the Punjab-Haryana borders is unlikely to impact procurement operations.
Fertiliser subsidy
The government announced a Rs 24,420-crore subsidy on Phosphatic and Potassic (P&K) fertilisers for the kharif season. It said the farmers will continue to get key soil nutrient DAP at Rs 1,350 per quintal.
Along with DAP (Di-ammonium Phosphate), the government asserted that retail prices of other major P&K fertilisers would remain stable.
