Government's keen eye on wheat market - effort to control prices

05-Jun-2025 06:17 PM

New Delhi. The Union Agriculture Ministry has estimated that wheat production will rise significantly to a record high of 1175.10 lakh tonnes in the Rabi season of 2024-25. Government procurement has also increased to around 300 lakh tonnes, the highest level in the past four years.

This season, the private sector also managed to buy a substantial quantity of wheat. The government had anticipated that with improved supply and availability, wheat prices in the domestic market would remain stable.

However, contrary to expectations, wheat prices began to rise. In response, the government acted quickly by implementing a storage limit order on wheat in the last week of May.

Though the storage limit has been set relatively high for now, authorities have warned that if the move does not produce the desired results in terms of curbing price rise, the limits may be further reduced.

Additionally, the government is seriously considering launching the Open Market Sale Scheme (OMSS) as another measure. It has indicated that every possible step will be taken to control the sudden spike in wheat prices.

Under OMSS, the Food Corporation of India (FCI) conducts weekly e-auctions to sell wheat from its stock, allowing flour millers and processors to participate.

The government is closely monitoring the wheat market and remains committed to preventing further price hikes.

This policy stance has increased pressure on traders and stockists who had purchased wheat at higher prices directly from farmers and are now holding large inventories.