New Delhi. The pace of wheat supply in important mandis of major producing states is slowing down while the auction sale of government wheat under the Open Market Sale Scheme (OMSS) has not started yet. The government is probably waiting for the market price to rise. The minimum reserve price of OMSS wheat has already been fixed at Rs 2550 per quintal. The government will want to sell its wheat only after a huge rise in prices is created.

In Rajkot, Gujarat, the price increased by Rs 200 to Rs 2500/3200 per quintal. In Indore, Dewas and Khandwa of Madhya Pradesh, its price was down by Rs 50, Rs 150 and Rs 50 respectively. In Indore, the price came down to Rs 2500/3200 per quintal. In other mandis of the state, the price of wheat either remained stable or increased by Rs 50-55.

The government is said to have a surplus stock of 50-60 lakh tonnes of wheat which can be made available to millers-processors through OMSS. But it has not been disclosed yet when the auction process will start. Last month, the Union Food Secretary had said that there is a good supply of wheat in the domestic markets and the prices are also not seeing much increase, so there is no need to start OMSS at the moment. After this disclosure, the price of wheat started improving in the markets and the activity of buyers increased.