Decision to increase the reserve price of food grains under OMSS
30-Jun-2025 11:46 AM
New Delhi. The Central Government has decided to increase the reserve price of wheat and rice sold under the Open Market Sale Scheme (OMSS). This also includes broken rice, which is sold to distilleries for ethanol production.
An important meeting of the Committee of Secretaries was held on June 26, in which the reserve price was also determined for coarse grains sold through OMSS, and these prices will remain valid until June 30, 2026.
Additionally, the Department of Food and Public Distribution may include transportation costs separately from the reserve price of food grains, increasing the likelihood of higher grain prices.
According to an official memorandum from the Union Finance Ministry, the reserve price of wheat for all crop years sold under OMSS has been fixed at Rs 2550 per quintal, which also includes the wheat stock purchased during the current year.
Previously, the minimum reserve price for wheat under OMSS was Rs 2325 per quintal for Fair Average Quality (FAQ) and Rs 2300 per quintal for Under Relaxed Specification (URS) categories.
However, this new reserve price will apply only when the government announces the launch of the open market sale scheme.
The new reserve price for rice is expected to take effect from October 1, 2025, though the existing prices will remain valid until October 31.
The government has stated that there is adequate stock of wheat and rice in the central pool, so the OMSS can be implemented without any issue. However, the increased cost of food grains has made it necessary to revise the reserve prices.
According to official data, as of June 1, 2025, there was a stock of 379.90 lakh tonnes of rice in the central pool, along with 322.50 lakh tonnes of paddy equivalent to 216 lakh tonnes of rice.
Additionally, there were 369.20 lakh tonnes of wheat and 4.60 lakh tonnes of coarse grains in government warehouses.
For rice, the minimum reserve price for direct sale to state governments, provincial corporations, and community kitchens has been increased from Rs 2250 per quintal to Rs 2320 per quintal, and the maximum quantity allowed for sale has been fixed at 32 lakh tonnes.