FCI to offload 25 lakh tonnes of wheat in the open market to curb price hikes
This decision aims to moderate wheat prices and curb inflationary trends in food items. Wheat will be sold under the government's Open Market Sale Scheme (OMSS) through e-auction to flour mills, manufacturers of wheat products, processors, and end users.
The government has announced the sale of 25 lakh metric tonnes (LMT) of wheat from the Food Corporation of India’s (FCI) buffer stock to bulk buyers, including flour millers, by March 31, 2025. This decision aims to moderate wheat prices and curb inflationary trends in food items. Wheat will be sold under the government's Open Market Sale Scheme (OMSS) through e-auction to flour mills, manufacturers of wheat products, processors, and end users.
“The Department of Food and Public Distribution has fixed a reserve price of Rs 2,325 per quintal for wheat (FAQ) and Rs 2,300 per quintal for wheat (URS) of all crops, including RMS 2024-25, up to March 31, 2025, for sale to private parties through e-auction,” the Food Ministry said in a press release. However, the government did not disclose the start date for the FCI wheat sale to bulk buyers.
This decision comes as a proactive measure to manage wheat prices amid high food inflation. The price of wheat is around Rs 32 per kg in major markets. In the previous year, FCI offloaded a record 100 lakh tonnes of wheat in a similar effort, beginning open market sales in June.
India’s wheat procurement for the 2023-24 season ended on June 30, with FCI purchasing 266 lakh tonnes—lower than the government’s target of 373 lakh tonnes, primarily due to private traders purchasing wheat at prices above the minimum support price (MSP) of Rs 2,275 per quintal.
Flour millers have long demanded open-market wheat sales, citing the need for a steady supply to stabilize their operations. The government’s move to release additional wheat into the market is expected to provide relief to both producers and consumers by ensuring price stability.
With wheat production estimated at 112.92 million tonnes for the 2023-24 crop year, the FCI aims to manage its buffer stock effectively to meet demand and curb any price volatility in the coming months.
