Cabinet approves wheat procurement in UP from March 17 to April 25

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Monday approved the procurement of wheat in Uttar Pradesh starting March 17 till April 25. The development comes days after the Department of Food and Public Distribution, under the Ministry of Consumer Affairs, Food and Public Distribution, pegged government agencies’ wheat procurement at 31 million tonne (MT) for the 2025-26 rabi marketing season (April-June), marking a year-on-year increase of 26 per cent.

The ministry highlighted that a number of factors were taken into account in a meeting with state food secretaries before arriving at the annual estimate, including weather forecasts, production projections and the states’ readiness for procurement operations.

Under the Minimum Support Price (MSP) mechanism for the crop, Uttar Pradesh, Punjab, Aryana, Madhya Pradesh and Rajasthan are the main contributors to the Centre’s wheat procurement programme.

As part of the arrangement, the Food Corporation of India procures the produce along with state procurement corporations.

Typically, the arrival of supplies in wholesale markets begins around mid-March every year, and wheat procurement operations begin around the onset of April.

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Agriculture is the Backbone of the domestic economy

Over the years, India has significantly increased its Budget allocations for the agriculture sector, from Rs 11,915 crore in 2008-09 to Rs 1,22,529 crore in 2024-25. Food grain production in the country has risen from 204.6 million tonnes in 2004-05 to an estimated 332.3 million tonnes in 2023-24, with enhanced productivity and Minimum Support Price (MSP) revisions ensuring more incomes for farmers. The MSP for wheat has grown from Rs 1,080 per quintal in 2008-09 to Rs 2,425 per quintal in 2023-24, with the total MSP paid to growers surging from Rs 2.27 lakh crore in 2004-13 to Rs 5.44 lakh crore in 2014-24.

How wheat procurement has grown

Wheat procurement has seen a substantial increase in India, rising from 2140 LMT in 2004-05 to 2013-14 to 3072 LMT in 2014-23.

Enhanced Budget Allocation

The Budget estimate for the Department of Agriculture, Cooperation and Farmers Welcare stood at nearly Rs 1,22,529 crore in 2024-25, from Rs 21,933.5 crore in 2013-14 and Rs 11,915 crore in 2008-09.