Market Rallies Due to Shortfall in Government Wheat Sales; Prices in Delhi Jump by ₹70–80 per Quintal in Two Days

Despite the central government issuing tenders under the Open Market Sale Scheme (OMSS) for the sale of wheat in the open market, roller flour mills and local flour mills (atta chakkis) are unable to procure the quantity of wheat they require. The widening gap between limited government supply and the demand from these mills has caused wheat prices in Delhi to surge by ₹70–80 per quintal over the last two days. This has also impacted the prices of wheat flour (atta), refined flour (maida), and semolina (suji). Due to the constrained supply, wheat prices in Delhi have climbed to ₹3,120–3,150 per quintal within just two days. A bullish trend persists in other states as well, as roller flour mills and traders struggle to secure sufficient quantities of wheat. Increased procurement efforts by mills and heightened competition for the available stock are providing further support to prices. The government initiated tenders for open market sales last Wednesday. It is estimated that roller flour mills and local flour mills in Delhi require approximately 100,000 metric tonnes of wheat for their weekly processing needs; however, only 4,000 metric tonnes were sold in the first tender, and this was increased to 5,000 metric tonnes for the current week. Given the significant disparity between demand and availability, mills are unable to benefit from government sales in proportion to their actual requirements.

Future Market Direction Hinges on Government Sales

The trajectory of the wheat market in the coming days will largely depend on the volume of wheat the central government decides to sell under the OMSS. If the government does not increase the sale volume in next week’s tender—leaving mills unable to source the wheat they need—the upward trend in prices is likely to continue. Conversely, an increase in government supply could help curb this price surge.