Huge Wheat Stocks in Central Pool Continue to Pressure the Market

22-Jun-2026 01:07 PM

New Delhi: The government procurement drive for wheat, the most important food grain of the rabi season, is almost over. However, due to exceptionally large procurement this year and substantial carryover stocks from the previous season, the total wheat stock in the Central Pool has risen to over 50 million tonnes (500 lakh tonnes), the highest level since 2021. Of this, 23.2 million tonnes (232 lakh tonnes) is classified under the URS category, while the remainder consists of Fair Average Quality (FAQ) wheat.

Considering the challenges of safe storage, it appears that the Ministry of Food may soon authorize the Food Corporation of India (FCI) to sell wheat from its stocks under the Open Market Sale Scheme (OMSS). At the same time, arrivals in wholesale mandis remain strong. As a result, the wheat market continues to face supply pressure, and prices are trading below the government’s Minimum Support Price (MSP) of ₹2,585 per quintal.

This year, the government has permitted the export of 5 million tonnes (50 lakh tonnes) of wheat and 1 million tonnes (10 lakh tonnes) of wheat products. However, the pace of export contracts and shipments has remained slow. Exporters are purchasing only limited quantities of wheat from the market, while demand from millers and processors remains at normal levels.