Punjab Flour Millers and Processors Need More Government Wheat

05-Feb-2026 09:17 PM

Ludhiana: Due to the extremely limited arrival of wheat in the mandis (wholesale markets) of Punjab, the state that contributes the most food grains to the central pool, flour millers and processors sell most of their marketable wheat stock to government agencies after the harvest (April-May). Therefore, only a limited quantity of wheat is available for sale in the open market in the later months.

The central agency, the Food Corporation of India (FCI), is conducting weekly e-auctions to sell wheat from its stock to millers and processors under the Open Market Sale Scheme (OMSS). Punjab millers are showing the most interest in purchasing this wheat.

In the auction held on February 4, 26,000 tonnes of wheat were offered for Punjab, of which about 24,630 tonnes, or 95 percent, were sold. In previous weeks, almost the entire quantity offered was sold, clearly indicating strong demand for government wheat in the state.

The minimum reserve price for FCI wheat is fixed at Rs 2550 per quintal, while Punjab millers and processors have purchased it at prices as high as Rs 2700 per quintal.

Flour millers say that about 200 tonnes of wheat could not be sold in Delhi this time due to transportation difficulties.

If more wheat is offered for sale from depots near the premises of flour mills in Punjab, the enthusiasm of millers/processors to purchase it could increase.

Millers claim that Punjab markets have the capacity to consume up to one lakh tonnes of wheat in each FCI auction, but a conducive environment is necessary for this.