Better to Sell Wheat in OMSS Than Suppress Market
30-Aug-2025 12:53 PM
New Delhi. The reduction in stock limit by the Central Government has not had any significant impact on the wheat market. Neither has there been much improvement in the supply of wheat in the wholesale markets nor has there been any significant fall in prices.
This clearly indicates that traders / stockists and millers-processors do not have any huge stock of wheat and hence the arrival in the wholesale markets remains normal.
Wheat traders are not very surprised by the reduction in stock limit but are definitely feeling some suffocation and pressure.
Trade analysts say that when the wholesale market price of wheat remained stable, there was no need to cut the stock limit.
According to industry-trade critics, in fact the government has exaggerated the production estimate of wheat and on this basis the Food Ministry is taking steps.
To control the possible rise in wheat prices in the upcoming festive season, the government has cut the stock limit as a precautionary measure. Instead,
it would have been better if auction sale of wheat from the central pool was started under the Open Market Sale Scheme (OMSS). This would have provided adequate stock of wheat to the millers-processors and there would have been no possibility of increase in market prices.
In July itself, the government had indicated the start of OMSS and also fixed the minimum reserve price for wheat. But the scheme has not been started yet. Instead, sale of rice has been started under this scheme.
Food Corporation of India has such surplus stock of 50-60 lakh tonnes of wheat which can be sold through the open market sale scheme. If its process starts soon, then the rise in the market price of wheat can be curbed to a great extent.
The order to reduce the stock limit on wheat will remain in force till March 31, 2026 and the new Rabi marketing season will start from April 1.
The government says that the stock limit has been revised to remove the possibility of virtual (artificial) shortage of wheat in the market during the festive season. The price of wheat has remained stable to a large extent.
On August 28, the average wholesale market price of wheat at the all India level was recorded at Rs 2819.40 per quintal which was 1.7 percent higher than last year but 0.2 percent lower than last month.