IGrain India Exclusive Report – “Once Run by Bran, Now Shut Down – The Echoing Crisis of the Milling Industry”
18-Jun-2025 04:52 PM
IGrain India Exclusive Report – “Once Run by Bran, Now Shut Down – The Echoing Crisis of the Milling Industry”
★ Wheat Milling Industry in Crisis: Even Bran No Longer Sells
★ India’s wheat milling industry is currently facing a deep crisis. The sector, which once thrived on the high prices of wheat bran, now finds itself in a position where neither bran nor its main products—flour (atta), refined flour (maida), or semolina (suji)—are finding buyers. This has created a double blow for the entire value chain.
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★ In recent seasons, bran prices had reached levels equal to or even higher than wheat’s Minimum Support Price (MSP), providing healthy margins for millers. For example:
★ In Rabi 2022, bran prices were around 92% of wheat MSP.
★ In Rabi 2023, bran touched ₹2,200 per quintal, while wheat MSP was ₹2,125—meaning bran prices were 104% of MSP.
★ In Rabi 2024 and Rabi 2025, prices normalized back to 92–95%, but by then, market demand had already weakened significantly.
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★ When bran fetched high rates, wheat milling was profitable. Milling units easily recovered their costs, and bran revenue made production viable. But the situation has now reversed.
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★ Bran prices have plummeted to ₹18–₹20 per kg, and even at such low prices, there are no takers. Demand has completely vanished. Stocks are piled up, but payments are stuck. The cash flow crunch has become so severe that many mills are considering halting operations.
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Key reasons behind this crisis include:
★ Export restrictions: The government’s ban on wheat and wheat product exports led to an oversupply in the domestic market, without corresponding demand.
★ Rise of DDGS (maize-based animal feed): The growing use of DDGS has reduced demand for bran.
★ Weakened domestic consumption: Buyers of atta, maida, and suji have pulled back, disrupting the entire milling chain.
★ While wheat MSP continues to rise, bran prices have collapsed—and there are no buyers. As a result, milling wheat is now a loss-making activity.
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The industry’s key demand:
★ Immediate government approval for the export of wheat-based products.
★ Unless exports reopen, market balance won’t return, and milling units will remain under severe stress.