Wheat Open Market Sale Scheme (OMSS) 2025-26 and Its Impact on Markets
12-Jul-2025 11:06 AM
Wheat Open Market Sale Scheme (OMSS) 2025-26 and Its Impact on Markets
★ The Ministry of Food has approved the sale of wheat under the Open Market Sale Scheme (OMSS). Under this scheme, the reserve price of wheat has been set at ₹2,550 per quintal for the 2025-26 season, while the Minimum Support Price (MSP) is ₹2,425 per quintal.
★ In the previous year, the reserve price under OMSS was ₹2,325 per quintal.
★ Yesterday, wheat in Shahjahanpur was traded at ₹2,535 per quintal, and today, in Bulandshahr, it traded at ₹2,540 per quintal. Currently, market prices remain below the OMSS reserve price.
★ As of July 1, the Food Corporation of India (FCI) holds approximately 35.2 million tonnes of wheat, while the buffer requirement for this period is set at 27.58 million tonnes.
★ In FY25, FCI sold 3 million tonnes of wheat under OMSS, whereas in FY24, a record 10 million tonnes were sold through the same scheme.
★ The Public Distribution System (PDS) requires around 1.8 million tonnes of wheat every month. It is expected that after fulfilling PDS needs till March 2026, sufficient wheat stocks will still be available.
★ In the current fiscal, FCI may offer 4 to 5 million tonnes of wheat under OMSS, with actual volumes to be adjusted based on market conditions.
★ For example, the current wheat price in Bulandshahr is ₹2,540 per quintal. After adding local transportation, mandi taxes, and other charges, the effective cost reaches around ₹2,640 per quintal.
★ If wheat is allotted at ₹2,550 per quintal in OMSS auctions, the total cost for millers could be approximately ₹2,625 per quintal.
★ This means the price gap between FCI and local mandi wheat narrows to just ₹15 per quintal, provided tenders are approved at ₹2,550.
★ However, if tenders are awarded at higher rates, it may support overall market prices.
★ Additionally, there has been no change in the wheat stockholding limit, which signals stability for traders.
★ Today, wheat in Delhi opened ₹5 higher at ₹2,765 per quintal compared to yesterday's closing.