Wheat procurement might be 4 to 5 million tons (mt) less for the central pool over last year. In absolute terms, this would be a four-year low. All India procurement was 28.08 mt in 2015-16. The initial estimate of wheat purchase by government agencies for 2016-17 was 30 mt, later revised to 28 mt in the backdrop of drought in much of the country. Total procurement of 21.5 mt was registered till Thursday; it was 20.9 mt in the corresponding period last year. And, arrivals have slowed in most grain markets.
According to reports, farmers in Rajasthan, Madhya Pradesh and Uttar Pradesh have this year preferred selling to private buyers due to instant cash payment, as compared to delayed payments by state.