Millers Are Unlikely to Show Haste in Purchasing Wheat Under OMSS

03-Jul-2025 06:11 PM

New Delhi. Although the government has not made any official announcement yet, there is market speculation that it may begin auctioning wheat under the Open Market Sale Scheme (OMSS) starting in August 2025.

The minimum reserve price for this sale is expected to be Rs 2550 per quintal, with additional transportation costs to be borne by the buyers.

A leading flour miller stated that last year, around 30 lakh tonnes of wheat were sold through OMSS. With the Ministry of Agriculture estimating a record wheat production of 1175 lakh tonnes this year—alongside a significant increase of 34–35 lakh tonnes in government procurement—the government could easily offer up to 60 lakh tonnes for sale under the scheme. Domestic wheat prices have remained largely stable, with no major fluctuations observed.

According to trade analysts, most flour millers and processors already have enough wheat stock to last them the next four to six months, as they successfully procured ample quantities directly from farmers.

As a result, they are unlikely to rush into purchasing wheat from OMSS once the auction process begins. Moreover, with the reserve price set at Rs 2550 per quintal and additional transport costs, the wheat sold through OMSS may not be economically attractive, especially since wholesale market prices are hovering around the same level.

Government agencies such as NAFED, NCCF, and Kendriya Bhandar, which sell Bharat Brand flour, will also receive wheat at the same rate of Rs 2550 per quintal. NGOs and community kitchens will be eligible to purchase at this price as well.

It is notable that the minimum support price (MSP) for wheat has gradually increased over the years—Rs 2425 per quintal in 2025, Rs 2275 in 2024, and Rs 2125 in 2023.