India’s Wheat Dilemma: Government Prioritizes Procurement Over Private Sector Amid Falling Stocks

The Indian government may soon require private companies to hold off on purchasing wheat until the state secures enough to meet its buffer norms. This decision comes as the central government’s wheat stock is projected to fall below the prescribed buffer norm on April 1 for the first time in more than a decade, spotlighting Uttar Pradesh as a critical battleground for wheat procurement.

Uttar Pradesh, known for having the cheapest wheat in the country, has attracted the attention of both multinational companies (MNCs) and large corporations. These entities typically stockpile wheat to ensure a year-round supply. However, with the central government’s stock dwindling, officials have signaled a clear message to the private wheat industry: refrain from hoarding wheat during the critical arrival season in April, to allow for government procurement.

The directive emerged from a recent government meeting with industry representatives, where the focus was on ensuring that the government’s procurement targets are met before the private sector begins its buying spree. “While we understand the operational needs of millers, who require wheat for their plants during the harvest season, it’s crucial for national food security that the government meets its procurement targets first,” stated a government spokesperson.