Centre’s open market wheat sale gets lukewarm response
The Food Corporation of India’s wheat e-auctions under OMSS have seen weak demand in FY26, with only 0.35 MT sold against a 3 MT allocation. Stable prices, record 2024-25 production, and ample private stocks have reduced bulk buyers’ interest. FCI holds 27.12 MT of wheat versus a 13.8 MT buffer, while rice sales have surged to 8 MT despite rising central pool stocks.
With adequate private stocks and stable prices, the government’s move to offload wheat in the open market has received a lukewarm response this season from bulk buyers such as flour millers.
Sources said that after relaunching e-auctions under the Open Market Sale Scheme (OMSS) last week, the Food Corporation of India(FCI) has so far sold only around 0.35 million tonne (MT) of wheat in FY26 against an allocation of 3 MT.
After two weekly e-auctions in November 2025, the FCI had suspended wheat sales from its stocks for a month following a discouraging response from bulk buyers such as flour millers. The weekly e-auctions resumed last week.
Traders said that the e-auction for wheat, which is likely to continue till the second week of March 2026, may not see higher participation from bulk buyers as prices have remained stable due to adequate stocks.
In FY25, the corporation sold 3 MT of wheat in the open market from its surplus stocks. Officials said the FCI may sell around 1.2 MT of wheat in FY26.
Sluggish Price Trends
In the current fiscal, wheat prices have remained sluggish following record production of over 117 MT in the 2024-25 crop year, against an estimated demand of around 108 MT, and ample availability in the open market.
In addition, prospects of another bumper output due to higher acreage under wheat cultivation in the 2025-26 season and favourable weather conditions are expected to keep supplies stable in the coming months.
Trade sources said that surplus wheat sold by the government at subsidised rates would further depress prices, potentially discouraging private purchases of grain in the new marketing season (2026-27), which begins on April 1.
The wheat price under OMSS for bulk buyers such as millers has been fixed at Rs 2,550 per quintal for 2025-26, excluding freight.
Prevailing market prices in Delhi are currently in the range of Rs 2,700–2,800 per quintal.
Sources said that while private entities purchase wheat at the minimum support price (MSP) of Rs 2,425 per quintal from farmers at the beginning of the marketing season from April 1, 2025, an additional carrying cost of about Rs 650 per quintal has accrued over the past ten months of the current fiscal.
Currently, the FCI holds 27.12 MT of wheat against a buffer norm of 13.8 MT as on January 1, while procurement for the 2026-27 season will begin from April 1.
Inflation in wheat eased further to 0.66% in December, compared with a decline of 0.33% in November.
Govt offloads record 8 MT rice under OMSS
Meanwhile, the government has offloaded a record 8 MT of rice in the open market so far in the current fiscal through OMSS, liberal allocations to states, supplies for ethanol manufacturing, and the Bharat Rice initiative.
However, central pool rice stocks continue to surge despite record sales of surplus grain. The current effective central pool stock stands at over 32.5 MT—more than three times the buffer norm of 7.61 MT for January 1.
Officials said the current FCI stock excludes about 37 MT of rice yet to be received from millers.
In FY25, the FCI allocated 4.63 MT of rice to state social welfare schemes (1.12 MT), OMSS (1.96 MT) and ethanol manufacturing (2.3 MT).
In FY24 and FY23, the FCI had offloaded 1.54 MT and 1.78 MT of rice, respectively, through various schemes to bulk buyers.
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Source : Financial Express
