Sales of OMSS wheat likely to remain slow

15-Nov-2025 11:27 AM

New Delhi. The Food Corporation of India (FCI) has initiated weekly e-auctions to sell wheat from its stock to millers and processors under the Open Market Sale Scheme (OMSS),

but buyers are seeing little interest. In the first auction held on November 12th, 200,000 tons of wheat were offered for sale, but only about 73,000 tons, or 36%, were sold.

Millers say the price of government wheat is not attractive. Its minimum, or basic, reserve price has been set at ₹2,550 per quintal, excluding transportation costs. Wheat is available at approximately the same price level in the open market, and supply and availability in wholesale markets remain comfortable.

A flour miller says that the price of government wheat needs to be at least 3 to 5% lower than the open market price for buyers to show interest.

Buyers have to bear the burden of advance payment, transportation costs, documentation, and other expenses, while purchasing wheat from the open market is less complicated. Unless millers and processors realize some savings by purchasing government wheat, their interest is doubtful.

Millers from Punjab, Haryana, Uttar Pradesh, Delhi, and Jammu and Kashmir are currently showing interest in purchasing government wheat.

In Punjab and Haryana, government wheat is free of transportation costs, while the other three states are much closer. However, millers from distant states face a problem. The government will either have to reduce the reserve price or include transportation costs.