Domestic Wheat Consumption Expected to Remain Below Production

28-Apr-2025 06:01 PM

New Delhi, April 28, 2025 – Domestic wheat production is expected to register a significant increase this year compared to last year, with both government and commercial procurement showing positive trends. 

Navneet Chitlangia, President of the Roller Flour Millers Federation of India (RFMFI), said that wheat production in the country could reach around 1,090 lakh tonnes during the current year, while domestic consumption is estimated at 1,030-1,040 lakh tonnes, leaving a surplus of 50-60 lakh tonnes.

Although the government has set a procurement target of 312.70 lakh tonnes, actual government procurement is expected to reach 290-300 lakh tonnes, a substantial rise compared to 266 lakh tonnes purchased last year.

Chitlangia emphasized that this year, the opening stock of wheat in the central pool was also higher compared to last year, which will further boost total stock levels.

This is expected to provide the government with greater flexibility to intervene in the domestic market and control prices through the Open Market Sale Scheme (OMSS).

Market experts estimate the open market price of wheat this year will likely range between Rs 2,600 and Rs 3,000 per quintal. Government procurement has seen strong growth in major wheat-producing states like Punjab, Haryana, and Madhya Pradesh.

Last year, the central pool had just 75 lakh tonnes of wheat stock on April 1, whereas this year, it has risen to 118.70 lakh tonnes. Even if domestic consumption increases slightly, the government is optimistic about maintaining market stability.

There are also signs of shifting consumption patterns in wheat-based products. Despite the imposition of storage limits and an export ban over the past two years, wheat prices continued to rise.

However, with improved availability this year, a sharp price increase seems unlikely.