Record Wheat and Rice Procurement Secures India’s Food Grain Stock for 2024

Team Finance Saathi

27/May/2024

Key Points:

India procured 262.48 LMT of wheat in RMS 2024-25, surpassing last year's total.
Major wheat contributions came from Punjab, Haryana, Madhya Pradesh, Rajasthan, and Uttar Pradesh.
Rice procurement in KMS 2023-24 reached 728.42 LMT of paddy, aiding 98.26 lakh farmers.

India’s wheat and rice procurement for the Rabi Marketing Season (RMS) 2024-25 and Kharif Marketing Season (KMS) 2023-24 has set new records, demonstrating the country’s robust agricultural capabilities and its commitment to food security. The Central Pool now boasts a combined stock of over 600 LMT of wheat and rice, ensuring ample supplies for national food grain requirements under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and other welfare schemes.

Wheat Procurement Highlights

For the RMS 2024-25, India has successfully procured a total of 262.48 LMT (Lakh Metric Tonnes) of wheat. This figure not only surpasses last year's procurement of 262.02 LMT but also reflects the effective efforts put into the procurement process. The benefits have reached 22.31 lakh farmers across major wheat-producing states, with a total Minimum Support Price (MSP) outflow of US$ 7.19 billion (Rs. 59,715 crore).

The major contributions to wheat procurement came from five key states:

Punjab: Leading with 124.26 LMT of wheat.
Haryana: Following with 71.49 LMT.
Madhya Pradesh: Contributing 47.78 LMT.
Rajasthan: Providing 9.66 LMT.
Uttar Pradesh: Adding 9.07 LMT.

These states have played a crucial role in achieving this milestone, ensuring that the wheat procurement process runs smoothly and efficiently.

Rice Procurement Highlights

Similarly, rice procurement has also progressed smoothly, reflecting the government’s commitment to supporting farmers and ensuring food security. During KMS 2023-24, a total of 728.42 LMT of paddy was procured, which is equivalent to 489.15 LMT of rice. This effort benefited 98.26 lakh farmers, with a total MSP outflow of approximately US$ 19.32 billion (Rs. 1,60,472 crore).

The significant procurement of rice ensures that the Central Pool is well-stocked to meet the country's needs, particularly for the PMGKAY and other welfare schemes. This procurement also supports market interventions, stabilizing prices and ensuring that food grains are available at affordable rates to the general public.

Implications for Food Security

The record levels of wheat and rice procurement highlight several key implications for India’s food security:

Adequate Stock Levels: With over 600 LMT of food grains in the Central Pool, India is well-prepared to meet its domestic food requirements.
Farmer Support: The substantial MSP outflow underscores the government's commitment to supporting farmers, ensuring they receive fair compensation for their produce.
Welfare Schemes: The ample stock ensures that schemes like PMGKAY can continue to provide food grains to the needy, contributing to overall social welfare.

This record procurement is a testament to the coordinated efforts between the government, farmers, and procurement agencies. It demonstrates a successful model of agricultural management that balances production, procurement, and distribution to secure the nation’s food supply.

Detailed Analysis

To understand the impact of this procurement, it’s important to consider the broader agricultural and economic context. India’s agriculture sector has faced numerous challenges, including fluctuating market prices, unpredictable weather patterns, and the need for sustainable farming practices. Despite these challenges, the procurement figures for RMS 2024-25 and KMS 2023-24 reflect resilience and effective policy implementation.

Impact on Farmers

The procurement process has directly benefited a large number of farmers. By guaranteeing a Minimum Support Price (MSP), the government has provided a safety net, ensuring that farmers are not adversely affected by market fluctuations. This support is crucial for maintaining the livelihoods of millions of farmers and encouraging them to continue producing essential crops.

Economic Implications

The MSP outflow of US$ 7.19 billion for wheat and US$ 19.32 billion for rice represents a significant investment in the agricultural sector. This investment not only supports farmers but also stimulates the rural economy. The funds received by farmers are often reinvested in their farms and local communities, driving economic growth and development.

Future Prospects

Looking ahead, the success of the current procurement seasons sets a positive precedent for future agricultural cycles. Continued government support, along with technological advancements and sustainable farming practices, can further enhance productivity and procurement efficiency.

In conclusion, the record procurement of wheat and rice during RMS 2024-25 and KMS 2023-24 is a remarkable achievement for India. It ensures food security, supports farmers, and stabilizes the market, highlighting the country’s robust agricultural framework and the effective implementation of supportive policies. As India continues to build on these successes, it stands well-prepared to meet future food grain demands and support its population through various welfare initiatives.

Also Read : India's Data Centre Sector Set for Major Expansion Driven by AI and Digital Economy Growth

Join our Telegram Channel and WhatsApp Channel for regular Updates.

Services