Likely Start of Government Wheat Sales under OMSS

New Delhi: The Food Corporation of India (FCI) is likely to soon commence e-auctions of wheat from its stocks under the Open Market Sale Scheme (OMSS) to ensure adequate supply and availability of this vital food grain to flour millers and processors ahead of Diwali.

More than one lakh tonnes of wheat could be offered for sale in the first auction. While there is a plan to sell the grain across more than 20 states, the bulk of the quota is likely to be allocated to states such as Punjab, Haryana, and Uttar Pradesh.

It is worth noting that there is no significant surge in wholesale market prices for wheat, and market arrivals are considered to be near-normal. On the other hand, the FCI holds massive wheat stocks—carried over from June—and there is a perceived need to reduce these inventories to ensure sufficient storage space in warehouses for the upcoming harvest. Wheat sowing is set to begin soon, and the new crop will be ready to reach markets and government procurement centers by March-April of next year.

Wheat prices are gradually firming up, while the arrival situation is becoming somewhat complex. Flour millers and processors (particularly biscuit manufacturers) are awaiting the start of government wheat sales. However, the FCI has set a high minimum reserve price for its wheat.