Centre Increases Wheat Procurement Cap to 10 Million Tonnes for Madhya Pradesh

The Centre has approved an increase in Wheat Procurement from Madhya Pradesh to 10 million metric tonnes for the current marketing season, as per news reports.  

The earlier ceiling was 7.8 million tonnes. The revision follows higher production and increased arrivals in mandis across the state. In the previous year, procurement stood at about 7.7 million tonnes. 

Phased Procurement Underway 

Procurement operations began on 9 April in divisions including Bhopal, Indore, Ujjain and Narmadapuram, before expanding to other regions from 15 April.  

The initial phase covers farmers with landholdings of up to 5 acres. Procurement from medium and large farmers is expected to follow in subsequent stages as arrivals increase. 

Export Slowdown and Supply Build-up 

Wheat arrivals have risen this season, while export movement has remained limited. With fewer external buyers, supply has built up in domestic markets.  

This has raised concerns over the ability of farmers to sell produce at the minimum support price, particularly in high-output regions. 

Global Disruptions Add Pressure 

Global supply chains have been affected by the US–Iran conflict. Disruptions in the Strait of Hormuz have impacted the flow of inputs and increased costs. These factors have contributed to slower agricultural exports and uncertainty in trade conditions. 

Administrative Process 

Chief Minister Mohan Yadav sought a higher procurement limit, citing increased output and restricted export channels.  

The approval was communicated by Union Minister Pralhad Joshi to Agriculture Minister Shivraj Singh Chouhan following discussions on procurement requirements. 

Logistics and Packaging 

Procurement has also faced constraints in packaging materials. Reduced availability of jute bags has led to the use of polypropylene bags for storage and transport.  

This adjustment has been made to maintain procurement operations during the peak arrival period. 

Read More: Bihar Seeks ₹12,000 Crore Loan from RBI to Clear Pending Pensions! 

Conclusion 

The higher limit is intended to facilitate procurement operations during peak arrivals. It also addresses concerns around excess supply in domestic markets. 

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