Millers and processors show little interest in government wheat procurement

13-Feb-2026 12:37 PM

New Delhi. Flour millers and processors are showing little interest in government wheat procurement, primarily because they already have a good stock of this crucial food grain and because the price of government wheat is not as attractive as the open market price. Buyers are purchasing limited quantities. New wheat arrivals are expected to begin in the second half of next month.

In the e-auction held by the Food Corporation of India under the Open Market Sale Scheme (OMSS) on February 11, a total of 139,500 tons of wheat was offered for sale, of which only about 70,000 tons, or 50 percent, was sold. In the previous auction held on February 4, 66 percent of the wheat was lifted. Although the Food Corporation increased the quantity of wheat offered for several states this week, demand remained weak.

It's worth noting that the government has abolished stock limits to accelerate wheat sales, but millers and processors still don't seem enthusiastic about purchasing government wheat.

The government has a large stock of wheat, and this year's production is expected to be robust, which could increase government procurement. Therefore, the Food Corporation of India (FCI) is working to reduce existing stocks.

A flour miller from Uttar Pradesh says that millers and processors are receiving a good amount of wheat from open markets, and therefore, demand for government wheat is weak in other states except Punjab, Assam, and, to a lesser extent, Haryana.

Millers from South India are also not showing interest in purchasing wheat. Wheat procurement in Uttar Pradesh, which used to be good, has now slowed down there as well.