Changes in the wholesale market price of wheat before and after OMSS
Between December 4, 2024, and February 6, 2025, wheat prices fluctuated due to the Open Market Sale Scheme (OMSS). In Delhi, prices peaked at ₹3360 in January before returning to ₹3120. Shahjahanpur and Bulandshahr saw similar fluctuations, with prices stabilizing higher than pre-OMSS levels. Limited wheat arrivals and demand-supply factors also influenced the price trends.
iGrain India – The period between December 4, 2024, and February 6, 2025, witnessed notable fluctuations in the wholesale market price of wheat, which was influenced by various factors, including demand, supply, and the introduction of the Open Market Sale Scheme (OMSS) by the Food Corporation of India (FCI). Here’s an overview of the price changes before and after the OMSS and how they played out in different regions:
Lawrence Road, Delhi
- Pre-OMSS (December 4, 2024): The price of wheat was Rs 3120 per quintal.
- Initial Fluctuations: On December 5, 2024, the price fell slightly to Rs 3100, and on December 12, it rose to Rs 3110. Prices then continued to fluctuate within a narrow range, reaching Rs 3080 by December 19.
- Price Increase (December 19, 2024 – January 4, 2025): The price started to rise significantly, reaching a peak of Rs 3360 per quintal on January 4, 2025—an increase of Rs 240 compared to December 4.
- Subsequent Decline (January 6-7, 2025): After the peak, the price dropped briefly but regained some strength to reach Rs 3320 by January 14 and remained steady at Rs 3300 on January 21.
- End of January Fluctuation: By January 31, the price fluctuated again, dipping to Rs 3050 per quintal.
- Final Adjustment (February 6, 2025): On February 6, the price returned to Rs 3120 per quintal, the same level as before the OMSS started.
Shahjahanpur, Uttar Pradesh
- Pre-OMSS (December 4, 2024): Wheat prices were at Rs 2771 per quintal.
- Price Trends: The market saw volatility, with the highest price reaching Rs 3011 per quintal on January 6 and 14.
- End of February 2025: By February 6, 2025, the price improved to Rs 2931 per quintal, showing a recovery from its initial levels.
- Pre-OMSS (December 4, 2024): The price of wheat was Rs 2850 per quintal.
- Price Trends: In Bulandshahr, the highest price reached Rs 3170 per quintal on January 4, 2025.
- End of February 2025: On February 6, the price increased to Rs 2970 per quintal, higher than the pre-OMSS price.
Key Takeaways
- The introduction of the OMSS caused notable price fluctuations, with prices peaking in early January 2025 and then falling by the end of January.
- Wheat prices showed regional variations, with Shahjahanpur and Bulandshahr seeing different price trends compared to Delhi.
- The limited arrival of wheat in mandis might have contributed to the price volatility.
- Despite fluctuations, the market seemed to stabilize around the price levels observed at the start of December 2024, particularly in Delhi, but with a slight increase in regional mandis.
Overall, the OMSS did influence the market, though the underlying market dynamics of demand, supply, and limited wheat arrivals played crucial roles in the price trends observed.
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Source : Investing.com
