Adequate Wheat Stocks with Government Following Robust Procurement

01-Jul-2026 12:33 PM

New Delhi. Total wheat procurement for the central pool during the current Rabi marketing season has risen to 357.60 lakh tonnes, the highest level since 2021.

Government warehouses already held substantial wheat reserves, and with this fresh procurement, total stocks have climbed to 510 lakh tonnes. Arrivals of the grain in domestic wholesale markets remain strong, and prices have stayed relatively stable within a specific range, showing only minor fluctuations.

The Union Ministry of Food may announce the modalities, quotas, and pricing for selling wheat from Food Corporation of India (FCI) stocks under the Open Market Sale Scheme (OMSS) this month (July), even if the actual sales process does not begin immediately.

The Ministry faces a dilemma: wheat prices in wholesale markets are hovering near or below the Minimum Support Price (MSP); consequently, if the reserve price for government wheat is set too high, sales could be adversely affected. Moreover, a significant portion of the FCI's inventory consists of URS (Under-Relaxed Specifications) or lower-quality wheat.

Although the government procured this grain from farmers at the MSP (₹2,585 per quintal), flour millers and processors are unlikely to purchase it at this rate, given that Fair Average Quality (FAQ) wheat is available in wholesale markets at lower prices.

The costs associated with storing and maintaining the massive wheat stocks in government warehouses are mounting, and the quality of URS wheat could deteriorate further over time; therefore, the government is likely to attempt to sell it as quickly as possible. In any case, the food subsidy bill is witnessing a continuous and rapid rise.