Millers, processors show weak demand for wheat under OMSS

14-Nov-2025 01:56 PM

New Delhi. Although the Food Corporation of India (FCI) has initiated weekly e-auctions to sell wheat from its stock under the Open Market Sale Scheme (OMSS) for 2025-26, millers and processors are currently showing little interest in purchasing.

The Food Corporation offered 200,000 tons of wheat for sale under this auction, but only 30-37% of this amount was sold.

Given the ample supply of wheat in the open market (wholesale mandi) and competitive prices, millers and processors are not enthusiastic about purchasing the relatively high-priced government wheat.

During the weekly auction held on November 12, 2025, the Food Corporation was able to sell only 72,856 tons, or 36%, of the 200,000 tons offered, compared to the significant amount it had been able to sell last year. Wheat auction sales began in December.

At that time, large quantities of government wheat were purchased by millers and processors during each auction round because the open market price was high and fast, and supplies were low in the markets.

Rahul Chauhan, Director of iGrain India, says that this year, all major producing states have abundant wheat stocks, and consuming states are also seeing good availability.

Millers and processors are not relying heavily on wheat stocked in government warehouses to meet their needs.

The offer price for government wheat is also not attractive or competitive. The reserve price for government wheat is ₹2550 per quintal, excluding freight. Wheat is available in the open market at a price range of ₹2600-3000 per quintal.