India's Bumper Wheat Harvest: Securing Future Stocks

India has purchased 2.08 million metric tons of new-season wheat since March 15, up 44.4% from the previous year. This robust harvest allows the nation to avoid imports by strengthening reserves. Madhya Pradesh offers a bonus over the central government's set price, contributing to increased procurement.

India's wheat procurement has surged by 44.4% compared to last year, as the Food Corporation of India (FCI) purchases 2.08 million metric tons of new-season wheat from domestic farmers. This significant uptick signals a robust harvest, which is crucial for reinforcing the country's depleted reserves and avoiding the need for imports.

The FCI's initial focus on early varieties from Madhya Pradesh reflects promising procurement trends, with expectations for increased buying as wheat from Haryana, Punjab, and Uttar Pradesh reaches the market. Sources indicate both harvests and procurement levels maintain optimism for a satisfactory yield this year.

Aiding this procurement rise is Madhya Pradesh's additional bonus of 175 rupees per 100 kg, supplementing the government's minimum support price of 2,425 rupees per 100 kg. Last year, unsatisfactory harvests led to only 26.6 million tons' procurement, below the target of 30-32 million tons. The current season looks promising with a projected record output of 115.4 million tons.

(With inputs from agencies.)