Decision to Suspend OMSS Wheat Auctions Amid Limited Buying

09-Dec-2025 04:36 PM

New Delhi. The Food Corporation of India (FCI) has decided to keep the e-auction of wheat under the Open Market Sale Scheme (OMSS) suspended, as millers and processors have shown little interest in purchasing wheat through this route. The weekly auctions had begun on 12 November, but only 73,000 tonnes, or 36%, of the 2 lakh tonnes offered could be sold. Following this, the auction frequency was changed from weekly to monthly, but the results did not improve significantly. In the auction held on 26 November, against an offer of 2 lakh tonnes, the actual sale reached only around 80,000 tonnes, or 40%.

The next auction was scheduled for 10 December, but an FCI official said that due to the weak response from millers and processors, the auction has been kept on hold. Another official mentioned that some internal reasons also contributed to the postponement. Since 12 November, FCI has been able to conduct only two auctions, and out of the cumulative offer of 4 lakh tonnes, merely 1.50–1.55 lakh tonnes could be sold.

The Ministry of Consumer Affairs, Food & Public Distribution has allocated a quota of 30 lakh tonnes of wheat to be sold under OMSS for the current financial year, up to 31 March 2026. However, due to certain factors, the pace of sales has remained significantly slow.

According to industry sources, the government’s minimum reserve price of wheat is quite high, and transportation costs are added separately. On the other hand, wholesale market prices of wheat have fallen sharply. With stock limits in place, traders and stockists are compelled to offload their wheat quickly. Moreover, due to excellent sowing progress and expectations of a record new crop, even large producers are attempting to clear their existing stocks. As a result, millers and processors are able to procure sufficient quantities of wheat from open markets.