Centre increases wheat procurement, restricts sugar export up to 8 LMT

By Jitendra Choubey

The government’s wheat procurement has seen a notable increase this year, bringing some relief after three consecutive years of struggling to maintain adequate stock. As of now, procurement has reached 256.31 lakh metric tonnes (LMT), a significant rise from 205 LMT on the same date last year. However, this still falls short of the government’s target of 312 LMT for the current Rabi marketing season.

Higher procurement figures have been reported from all five major wheat-producing states—Punjab, Haryana, Madhya Pradesh, Rajasthan, and Uttar Pradesh, which together account for 65 per cent of the country’s wheat production. So far, 21.03 lakh farmers have benefited from the procurement, receiving a total payout of Rs. 62,155.96 crore under the Minimum Support Price (MSP) scheme.

Punjab has contributed 103.89 LMT, Haryana 65.67 LMT, Madhya Pradesh 67.57 LMT, Rajasthan 11.44 LMT, and Uttar Pradesh 7.55 LMT to the central pool so far.

According to Sanjeev Chopra, Secretary of the Ministry of Food and Public Distribution, the government is on track to surpass last year’s total procurement as a considerable window still remains open in the current season. Chopra said,” The increased procurement to awareness campaigns about MSP and ensured that farmers receive payments within two days. This year, the MSP for wheat has been set at Rs. 2,425 per quintal.”

Despite the current progress, concerns remain over the impact of adverse weather conditions on wheat procurement in recent years. In the 2022-23 season, the government procured only 187 LMT against a target of 444 LMT. In 2023-24, the procurement reached 262 LMT against a target of 341 LMT. For 2024-25, the figure stands at 267 LMT against the 320 LMT target.

Meanwhile, the government has announced new regulations for the khandsari (crude sugar or jaggery) industry, aiming to ensure fair and timely payments to sugarcane farmers and improve monitoring of sugar production. The government has amended the 1966 Sugar Control Order to regulate khandsari units with a crushing capacity of 500 tonnes per day (TCD). A total of 66 such units have been identified, and the revised order is expected to be officially notified in the gazette either today or tomorrow.

According to government estimates, around 30 percent of the country’s sugarcane has been diverted to the khandsari industry. The new rules are intended to help track this diversion more accurately. Additionally, the government has stated that India will export up to 8 lakh metric tonnes of sugar in the 2024–25 season, ending in September—lower than the permitted quota of 10 lakh tonnes. So far, 3 lakh tonnes have been exported, and another 60,000 tonnes are currently at ports, ready for shipment.

This article has been republished from The New Indian Express.