Government Wheat Stocks at a Five-Year High

04-Sep-2026 05:23 PM

New Delhi. While some economists and trade analysts have questioned the government's decision to move wheat and its value-added products from the restricted list to the 'free' export list—citing concerns that the persisting El Niño weather cycle could impact wheat yields during the Rabi season—other observers believe there is no cause for alarm. This is because the export offer price for Indian wheat is significantly higher than that of other supplier nations, and secondly, wheat stocks in government warehouses are at their highest level in five years. Furthermore, the Food Corporation of India (FCI) has not yet initiated e-auctions to sell wheat from its stocks to millers and processors under the Open Market Sale Scheme (OMSS).

Recently, wholesale market prices for wheat in Uttar Pradesh and other major producing states rose by up to ₹150 per quintal, a trend that will render Indian wheat even less competitive in the global market. Currently, the average Free-on-Board (FOB) export offer price for Indian wheat is at least $30 per tonne higher than that of other countries.

According to the Union Ministry of Agriculture, domestic wheat production surged to a record high of 120.66 million tonnes (1,206.60 lakh tonnes) in the 2025-26 Rabi season, up from 117.95 million tonnes (1,179.50 lakh tonnes) in the 2024-25 season. Meanwhile, data from the Food Corporation of India indicates that as of August 1, 2026, the central pool held a massive stock of 50.53 million tonnes (505.30 lakh tonnes) of wheat—the highest level recorded in the past five years. This ensures the availability of sufficient wheat stocks for national food security, precluding any risk of shortage.