Agri Picks Report April 23, 2024: Geojit Financial Services

commodities

Geojit Financial Services's report on Daily Agri Picks

Food Corp of India, along with state agencies, procured 6.8 mln tn wheat at the minimum support price, as of today, according to the data on the central food grains procurement portal. The government's wheat buying so far is 15% higher than last year's procurement during the same period. During the corresponding period last year, FCI had procured 5.9 mln tn ofwheat. The target for wheat procurement in 2024-25 has been set at 30-32 mln tn, against 34.2 mln tn last year. The government has set the minimum support price of wheat at 2,275 rupees per 100 kg. However, to encourage farmers to sell the crop, Madhya Pradesh and Rajasthan have announced a bonus of 125 rupees per 100 kg over and above the minimum support price. Amid depleting wheat stocks with government agencies due to last year's lower wheat crop and large welfare programmes, the Centre has started wheat procurement early in the season and is very ambitious about refilling the stocks. Last year, sales under the open market scheme were at an all-time high and the government also extended the free food grain programme for the next five years. Further, it also started selling wheat flour, atta, at a subsidised rate, which also weighed on the government's wheat stocks. Though the marketing season typically starts on Apr 1, government agencies advanced procurement by a month this season to coincide with the arrival of the crop at mandis. State wheat purchases are underway in Madhya Pradesh, Haryana, Uttar Pradesh, Rajasthan, Punjab, Himachal Pradesh, Uttarakhand, and Bihar. In Madhya Pradesh, the government bought 2.4 mln tn of wheat from 319,693 farmers. In Haryana, the government bought 3.1 mln tn of wheat from 258,644 farmers. The highest procurement of wheat was in Haryana. In Rajasthan, the government bought 134,083 tn wheat from 14,267 farmers. In Bihar, it bought 3,310 tn of food grain from 865 farmers, and 101 tn from 15 farmers in Uttarakhand. In Uttar Pradesh, the government has bought 323,803 tn of grain from 57,459 farmers at the minimum support price. In Himachal Pradesh, the government bought 193 tn of wheat from 37 farmers and in Punjab, 786,700 tn from 62,595 farmers. Procurement is yet to start in Gujarat and Jammu and Kashmir.

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