Government’s dual wheat policy raises concerns for trade

06-Mar-2026 07:09 PM

The government is planning to procure wheat directly from farmers during the upcoming procurement season. At the same time, wheat is being released under the Open Market Sale Scheme (OMSS) in non-producing states.

From the industry’s perspective, this dual approach may not be a positive development. If consuming states receive wheat directly from the Food Corporation of India (FCI) through OMSS, the demand for wheat from producing states could decline.

Meanwhile, states such as Rajasthan and Madhya Pradesh have announced bonuses over the Minimum Support Price (MSP) to encourage procurement. However, farmers who choose not to sell their wheat to the government may face marketing challenges if private trade demand weakens due to OMSS supplies in consuming regions.