Rice, wheat procurement is ‘consistently’ low: panel, Pg12

Key Highlights:

• A Parliamentary panel, headed by DMK MP Kanimozhi, has expressed concerns over consistently low rice and wheat procurement compared to estimates.
• Since 2022-23, procurement of wheat and rice has been less than 30% of total production.
• Actual wheat procurement was 76.71% (2023-24), 71.35% (2024-25), and 87.29% (2025-26) of the estimates.
• Rice procurement in Andhra Pradesh, Karnataka, and Punjab during the 2024-25 kharif season was 25.60 lakh tonnes, 0.003 lakh tonnes, and 116.13 lakh tonnes respectively, against set targets.
• The panel has urged the Union Food Ministry to improve procurement planning and coordination with states like Bihar, Gujarat, Punjab, and Uttar Pradesh.

Detailed Insights:

• The gap between estimated and actual procurement is attributed to factors like production fluctuations, market surplus, Minimum Support Price (MSP), market rates, demand-supply dynamics, and private trader involvement.
• The panel has recommended a review of the estimation methodology for procurement requirements and enhanced real-time monitoring of production and market arrivals.
• Collaboration between the Union government and State governments is crucial, especially in states where procurement falls significantly short of targets, to ensure more realistic and effective procurement operations.
• Efficient procurement is vital for maintaining adequate food stocks, supporting farmers through MSP, and ensuring the success of the Public Distribution System (PDS).

Key Concepts Involved:

• Minimum Support Price (MSP): A price set by the government to purchase crops from farmers, ensuring a minimum profit.
• Procurement: The process of purchasing food grains by government agencies for maintaining buffer stocks and distribution through welfare schemes.
• Public Distribution System (PDS): A government-run system for distributing subsidized food and essential items to the poor.