India's Wheat Economy
Production, Procurement, and the Buffer Stock System
India is the world's second-largest wheat producer, after China. The wheat belt — primarily Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, and Rajasthan — contributes the bulk of the annual Rabi crop harvested between March and April. The Food Corporation of India (FCI) procures wheat from farmers at the Minimum Support Price (MSP) announced by the Cabinet Committee on Economic Affairs. Procured grain flows into the Central Pool, which feeds the National Food Security Act (NFSA) distribution system — providing subsidised foodgrain to approximately 81 crore beneficiaries. The buffer stock norms (minimum operational stocks plus strategic reserves) are set quarterly; when stocks far exceed norms, exports become fiscally and logistically rational.
- MSP is determined annually on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
- The Central Pool's mandatory quarterly buffer norm for wheat is approximately 7.5 MMT (on April 1).
- NFSA 2013 entitles priority households to 5 kg of foodgrain per person per month at highly subsidised prices.
● Tracked since February 24, 2026 · last seen May 04, 2026 · updates as the daily brief publishes