Govt wheat procurement picks up; 1.6% higher YoY at 19 MMT so far.

The government had procured 19.0 mln tn of wheat as of Sunday, up 1.6% on year. The higher procurement is largely due to an increase in minimum support price this year. For the 2018-19 (Apr-Mar) marketing year, the government is procuring wheat from farmers at the minimum support price of 1,735 rupees per 100 kg, up from 1,625 rupees last year. So far, procurement has been highest in Punjab at 7.2 mln tn, according to government data. Purchases in the state were, however, 8.2% lower from a year ago due to a delay in arrivals. Wheat arrivals in Punjab were delayed due to rains at the time of harvest and supplies are picking up now and the procurement will cross last year’s numbers. In Haryana, another major contributor to the central pool, the government has procured 6.6 mln tn wheat so far, up 8.3% from a year ago.