News Capsule: Government wheat stocks at a 5-year high, cross 360 lakh tonnes
04-May-2026 09:59 AM
News Capsule: Government wheat stocks at a 5-year high, cross 360 lakh tonnes
★ Stocks are over three times the buffer requirement of 74.6 lakh tonnes and the highest in the past five years.
★ In the ongoing 2026–27 marketing season (April–June), strong procurement has pushed up stocks, with another 80–100 lakh tonnes likely to be added in the coming weeks.
★ The key reasons include higher government procurement and slower sales under the Open Market Sale Scheme (OMSS) by the ★ Food Corporation of India. In FY26, only about 6 lakh tonnes were offloaded against a target of 30 lakh tonnes.
★ A significant portion of the 230 lakh tonnes procured in April was bought under relaxed quality norms, with higher limits for lustre loss and broken grains.
★ The biggest challenge now is timely liquidation of stocks, especially lower-quality wheat. The industry remains cautious, with private buying at around ₹2600–2650 per quintal, close to the MSP of ₹2585.
★ Annual requirement under various government schemes stands at around 180–200 lakh tonnes, indicating a substantial surplus.
★ The government has allowed exports of 50 lakh tonnes of wheat and 10 lakh tonnes of wheat products, but export performance remains weak due to higher domestic prices.
★ Overall, with record stock levels, the key challenge for the government is to offload surplus wheat quickly while maintaining price stability.