India’s wheat procurement dynamics are witnessing a crucial shift in the rabi marketing season 2025-26. As of May 15, wheat procurement has increased by 14.4 per cent compared to the previous year’s procurement of 25.76 million tonnes (mt). However, the most telling aspect of this rise is the changing geography of procurement. While procurement in traditional States like Punjab and Haryana has declined by 3.4 per cent and 0.3 per cent respectively, other States have seen a substantial surge. Madhya Pradesh recorded an astonishing 69.4 per cent rise, followed by Rajasthan at 95.6 per cent and Uttar Pradesh at 16 per cent. Does it mean that equity in wheat procurement is beginning to take shape?
This shift marks a potential rebalancing of India’s wheat procurement policy, long dominated by a few States. Historically, Punjab and Haryana together contributed a lion’s share of the wheat procured by the Food Corporation of India (FCI) under the Minimum Support Price (MSP) regime. In 2023-24, Punjab alone accounted for over 46 per cent of the total wheat procurement, with Haryana contributing around 24 per cent. This meant that nearly 70 per cent of the national procurement came from just two States. In other words, out of 21.34 lakh farmers who benefited from MSP-based procurement at the India level, these two States alone accounted for 59 per cent.
Such concentration brought disproportionate benefits to farmers in these regions. The assured procurement under MSP led to greater investment in wheat farming, improved infrastructure such as mandis and logistics chains and a dependable income source for local farmers. On the other hand, despite being major wheat producers, States like Uttar Pradesh, Madhya Pradesh and Rajasthan witnessed much lower procurement levels (see Figure). Many farmers in these States were forced to sell their produce in open markets, often below the MSP, due to limited government procurement.
If MSP-based procurement continues to be centralised in a few States, it undermines the very rationale of the MSP system, ensuring a fair price for all farmers. The lack of procurement access in many wheat-producing regions not only depresses farm income but also discourages wheat cultivation due to perceived market risk. Farmers outside Punjab and Haryana are left vulnerable to price volatility, middlemen exploitation and distress sales. Over time, this inequity can widen regional income disparities as well.
Equity and sustainability
The recent trends signal a possible decentralisation of procurement, aligning it more closely with actual production levels across States. According to the Ministry of Agriculture estimates of 2023-24, Uttar Pradesh is India’s top wheat producer, contributing over 31 per cent of the national output, followed by Madhya Pradesh (around 20 per cent) and Punjab (around 16 per cent). Despite this, procurement from Uttar Pradesh in recent years was 5-6 per cent and from Madhya Pradesh around 15 per cent. The 2025-26 figures show a significant movement towards correcting this mismatch.
This redistribution is important not only from an equity perspective but also from a sustainability standpoint. The over-reliance on Punjab and Haryana for procurement has exacerbated ecological problems, particularly groundwater depletion and soil degradation due to the wheat-rice cropping cycle. Decentralising procurement can reduce pressure on these States and encourage crop diversification.
Further, procuring grain from diverse geographic regions reduces the risk of supply chain disruptions due to localised climate or policy events. It can also help in reducing transportation costs and storage burdens in a few regions, ensuring fresher and more accessible foodgrains for the public distribution system.
Future focus
For decentralisation to be meaningful and durable, the shift must be institutionalised through a standardised procurement policy. Currently, procurement operations are heavily influenced by State-level infrastructure and administrative will. Madhya Pradesh’s robust procurement increase can be credited to active State machinery, extensive mandi networks and digital payment systems. For other States to replicate this success, the Central government must work with them to strengthen procurement infrastructure.
To ensure equitable sharing of MSP benefits, procurement targets should be aligned with each State’s share in national wheat production. States with lower historical procurement figures should receive special support to develop their procurement ecosystems. Encouraging States to implement decentralised storage models, with cooperative and farmer-producer organisations playing a central role, can build resilience in the food supply chain and reduce post-harvest losses.
If these measures are implemented, the country can move towards a more equitable procurement regime. It will ensure that the benefits of the MSP system reach a wider base of farmers, reduce regional disparities and promote sustainable agricultural practices. Such a model will also help align procurement strategies with the country’s larger goals of doubling farmers’ income and achieving sustainable food systems.
In conclusion, the latest procurement data suggests that India is gradually moving towards a more decentralised and equitable model. The sharp rise in procurement from States like Madhya Pradesh, Rajasthan and Uttar Pradesh is a welcome development. But for this trend to continue, it needs policy backing in the form of a standardised national procurement framework. Only then we can ensure that the procurement system fulfils its intended purpose of benefiting a large number of farmers across the nation, not just in a select few States.
The writer is former full-time Member (Official), Commission for Agricultural Costs and Prices, New Delhi. Views are personal