Strong Wheat Procurement in Fifth Tender

02-Jan-2025 10:11 AM

Strong Wheat Procurement in Fifth Tender
In the fifth OMSS wheat tender, 1 lakh tons were allocated, with 96,825 tons purchased across states (excluding Jammu & Kashmir). This included 76,748 tons of FAQ wheat and 20,080 tons of URS wheat.
Rajasthan recorded high bids for FAQ wheat at ₹3009-3067/quintal (1,795 tons) and URS wheat at ₹2940-3061/quintal (3,195 tons).
In Assam, 4,600 tons of FAQ wheat sold at ₹3008-3326/quintal, and 1,900 tons of URS wheat at ₹3118-3138/quintal.
Uttar Pradesh saw the highest purchase of 14,000 tons of FAQ wheat, with bids ranging from ₹2789-2992/quintal, marking a fifth consecutive tender with complete sales.
Other key transactions: Haryana (5,000 tons FAQ at ₹2860-3080/quintal), Delhi (5,500 tons FAQ at ₹2826-3081/quintal), Madhya Pradesh (4,000 tons URS at ₹2835-2950/quintal), Karnataka (1,800 tons FAQ at ₹2811-3061/quintal, 3,200 tons URS at ₹2740-3006/quintal), Tamil Nadu (2,410 tons FAQ at ₹2651-2729/quintal, 260 tons URS at ₹2535-2621/quintal).
Market Impact:
Higher tender bids have influenced market prices. On January 1, 2025, Delhi wheat closed at ₹3170-3175/quintal, up by ₹30 from December 31, 2024.
If future tenders witness higher bids, the government might consider increasing the sale quantity, with an announcement possibly this week.
Outlook:
I-Grain India predicts minimal price impact even if sale volumes increase.
A significant concern remains the weak demand for flour, maida, and suji in the wheat market.