News Capsule: OMSS Sales Remain Sluggish
05-Feb-2026 12:38 PM
News Capsule: OMSS Sales Remain Sluggish
★ Wheat sales by the Food Corporation of India under the Open Market Sales Scheme (OMSS) remained weak on Wednesday. Out of the total 126,000 tonnes of wheat offered, only around 83,000 tonnes, or 66%, were sold.
★ The offtake was lower compared with the previous few weeks, indicating comfortable market supplies and subdued demand. Demand also softened in states such as Punjab, Assam, and Haryana, where almost the entire offered quantity was being picked up earlier. The situation was weaker in Uttar Pradesh, where only 45% of the offered wheat was sold.
★ In Uttar Pradesh, strong private procurement and easy availability of wheat at lower prices in mandis reduced interest in FCI wheat. While the reserve price for FCI wheat is uniformly fixed at INR 2,550 per quintal across India, higher transportation costs in distant states have further dampened buyer interest.
★ Although the quantity offered in auctions has been increasing, actual sales have been declining. About 89,000 tonnes were sold in the third auction, 88,000 tonnes in the fourth, and only around 84,000 tonnes in the fifth auction. Punjab, Assam, and Haryana have remained the main buyers in these auctions, suggesting that offtake is stronger in states where FCI procurement has been higher.
★ Tender prices in FCI wheat auctions have also been weakening consistently. During the current season, wheat prices have not touched INR 2,950 per quintal, compared with levels of around INR 3,200 per quintal in February last year. Wheat prices in Madhya Pradesh mandis are currently around INR 2,400–2,525 per quintal, below the minimum support price.
★ With the arrival of the new wheat crop set to begin in Maharashtra, Gujarat, and Madhya Pradesh, and four to five OMSS tenders still remaining, further pressure on wheat prices cannot be ruled out. If weather conditions remain favourable and a bumper crop materialises, prices may face additional downside pressure.