Punjab: Private traders overtake government procurement agencies in wheat purchases at Ludhiana mandis.

By Shariq Majeed

Private traders have emerged as the top wheat buyers in district’s grain markets this season, surpassing govt agencies in total procurement, as over 1.14 lakh metric tonnes of wheat were purchased in the district by Friday evening.

The official wheat procurement report dated April 18 suggests that private buyers purchased 38,224 MT — accounting for 33.5% of the total wheat lifted so far — outpacing each of the govt procurement agencies. Among state agencies, Markfed led with 22,171 MT, followed by Pungrain with 18,028 MT. The Food Corporation of India (FCI) trailed with just 4,961 MT.

Traders Bet on Higher Prices

Private millers and traders said their increased activity stems from expectations of wheat prices crossing ₹3,000 for each quintal, driven by last year’s procurement bottlenecks and limited market release by the govt. Sanjeev Kumar of Sahnewalia Agro-Industries in Khanna said traders are stocking up early to avoid shortages and profit from possible price surges. “Last year, the government couldn’t release adequate wheat to flour mills, which pushed up market rates,” he said. “Private buyers are now acting early to avoid being left behind.”

Another trader, speaking on condition of anonymity, said the demand for wheat-based products like maida, bread, biscuits and dalia remains high in Punjab. “With increasing market rates, traders are motivated to store more wheat for better margins,” he added.

Despite robust buying, the report notes that more than 26,000 metric tonnes of wheat remains unsold, while over 63,000 metric tonnes has yet to be lifted from the mandis — suggesting a buildup in logistical pressure. With traders taking an aggressive lead and procurement surpassing 80% of arrivals, authorities will need to step up lifting operations to prevent mandi congestion and grain deterioration. Meanwhile, as private players continue to stockpile, market watchers are bracing for a potentially price-volatile season ahead.

This article has been republished from The Times of India.