Resumption of e-auction of wheat sales hits millers as price dips
India’s resumption of wheat e-auctions under OMSS has pushed market prices down by about Rs100 per quintal, hurting flour millers and stockists. Ample supplies and policy uncertainty may also deter private buying in the 2026–27 season.
The government’s move to re-launch e-auction of wheat under the open market sale scheme (OMSS), after discontinuing it due sluggish demand, has brought down its market prices, thereby hitting flour millers and stockists.
Trade sources said that the surplus wheat being sold in the market by Food Corporation of India (FCI) would further depress prices, which may discourage private purchase of grain from the new marketing season (2026-27), starting April 1.
Sources added that while the private entities purchase wheat at minimum support price (MSP) of Rs 2,425/quintal from the farmers at the beginning of the marketing season, there is an additional carrying cost of Rs 650/quintal in the first ten months of current fiscal
“The market prices of wheat has dropped by around Rs 100/quintal to around Rs 2,750/quintal – Rs 2,800/quintal, thus putting stress on the stockists,” a leading flour miller told FE.
Price of wheat under OMSS
The price of wheat under OMSS for the bulk buyers, like millers, is fixed at Rs 2,550/quintal for 2025-26, excluding freight from Punjab.
Several millers said that in the current season, wheat prices have remained sluggish due to a record production of over 117 million tonne (MT) against an estimated demand of around 108 MT and ample availability of the crop in the open market.
“The policy uncertainty in pursuing offloading of the government’s stock makes the market unstable, while the objective of the OMSS was to control price in the market by providing food grains at reduced prices with the aim to curb inflation,” Deepak Kumar Bajaj, president, Uttar Pradesh Roller Flour Millers Association, said. Uttar Pradesh is the biggest wheat producing state in the country.
Sources told FE that only 0.15 MT of wheat was offloaded in the market from the FCI’s stocks sold during November and early December, against the target of 3 MT for FY26.
Wheat inflation
Wheat inflation in November 2025 eased further to 0.33% against a price rise of 2.04% in October.
Due to discouraging response from the flour millers, OMSS sales were discontinued. In FY25, the corporation had sold 3 MT of wheat in the markets from its surplus stock. Officials said that the corporation may sell over 2 MT of wheat in FY26.
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Source : Financial Express
