Open market sale of wheat from next month
The government is likely to begin offloading around 3 million tonnes of wheat under OMSS from next month to curb potential price increases. FCI holds 48.74 million tonnes of wheat, well above buffer requirements, while strong 2026-27 procurement and softer market demand have helped stabilise prices.
The government is likely to start offloading its wheat stocks under the open market sale scheme (OMSS) from next month, aiming to curb a possible price rise in the coming months.
Sources told FE that traders and bulk buyers must register on the Food Corporation of India’s (FCI) designated platform under OMSS. Initially the government may offer 3 million tonnes (MT) of wheat under OMSS from FCI’s surplus stock.
At present, the FCI has over 48.74 MT of wheat as the central pool stock against a buffer and strategic reserve norm of 20.52 MT for October 1. Traders say that the government currently holds over 20 MT of surplus wheat after meeting the requirement of the public distribution system and buffer.
“Wheat prices may see some upward trend depending upon demand and actual shipments of wheat to Bangladesh. Still, we anticipate that the government will begin releasing wheat under the OMSS tender in the coming month, which should further ease supply-side pressure and keep prices affordable,” Navneet Chitlangia, President, Roller Flour Millers’ Federation of India, told FE.
Chitlangia said that at present, there is ample availability of wheat across the country, while market prices have softened by Rs 60 – Rs 70/quintal from their recent highs. He said that these corrections in prices were largely driven by two factors: muted demand for wheat products and small and unorganised traders offloading their stocks in anticipation of the Government’s commencing open market sale.
The average retail price of sugar, according to the price monitoring cell of the Department of Consumer Affairs, was Rs 31.5/kg on Wednesday, the same level compared to last year. There was moderate retail inflation in wheat of 0.26% on year in July, 2026.
Millers Seek Export Flexibility
“Market prices have been stable except in northeast and south India, offloading of wheat in the coming months would ensure stability in prices in festive months,” Dharmendra Jain, president, UP Roller Flour Miller Association, said. Jain said flour millers have requested the government to allow exports of wheat under OGL to stabilize the market rather than the current system of license-based shipment.
The government has allowed exports of 5 MT of wheat and 1 MT of wheat products after a four-month ban on shipment was lifted in February.
The government has fixed the reserve price of Rs 2600/quintal and Rs 2585/quintal for Fair and Average Quality and under-Relaxed Specifications of wheat for the current fiscal respectively.
In FY26, the corporation could sell only 0.63 MT of wheat under OMSS to bulk buyers including flour millers.
The FCI and state agencies have purchased over 35 million tonnes (MT) of wheat in the 2026-27 rabi marketing season (April-June), the highest in the last four years. The government has purchased wheat from the farmers at the minimum support price (MSP) of Rs 2585/quintal.
About 20-22 MT of wheat is allocated annually for distribution under the Pradhan Mantri Garib Kalyan Anna Yojana.
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Source : Financial Express
