Private purchase of wheat in Punjab is expected to rise this marketing season due to depletion of stocks.”Private traders are expected to purchase 0.8-1 MT this season, up from 0.45 MT last year.”
Private traders procured 0.6 MT of wheat from farmers in the 2022-23 rabi marketing season in Punjab, which used to be avoided due to higher taxation. The government agencies lifted 9.64 MT of wheat. Processors are still waiting for the government policy on stocking to make a decision about purchasing from the mandis.
The government aims to purchase 13 MT of wheat from Punjab to bolster central pool stocks. Traders plan to buy wheat in Uttar Pradesh to build stock as government purchase has been limited. The FCI and state agencies have purchased 1.44 MT of wheat under the MSP since April 1.
The government agencies have purchased 1.29 MT of wheat from Madhya Pradesh, while procurement from farmers in other states has started. FCI aims to buy over 30 MT of wheat this season. The agency currently has a stock of 7.9 MT, against a buffer of 7.46 MT for April 1. FCI requires 18 MT of wheat annually for distribution under the free ration scheme.
