Wheat prices soften in weekly auction due to higher quantity offered

28-Feb-2025 03:41 PM

The price of wheat softened in the weekly e-auction organized by the Food Corporation of India (FCI) on February 27, 2025, under the Open Market Sale Scheme (OMSS).

The price decline is attributed to a significant increase in the quantity of wheat offered for sale. A total of 5 lakh tonnes of wheat was put up for auction, compared to 4 lakh tonnes in previous auctions. This large offering helped moderate prices.

However, wheat prices in the open market are still uncertain, as weather conditions remain unfavorable for the crop. Prices could either rise or fall depending on the production estimates for the 2024-25 season.

The Roller Flour Millers Federation of India will hold a wheat seminar on March 3-4, 2025, in Goa to discuss the domestic production, trade, and price trends for wheat during the upcoming season.

In the February 27 auction, nearly all of the 5 lakh tonnes offered (4.98 lakh tonnes) were sold. States like Uttar Pradesh and Punjab had an offer of 17,000 tonnes each, and 100% of that wheat was bought.

The government's wheat prices ranged from Rs 2520 to Rs 2985 per quintal in Uttar Pradesh and from Rs 2600 to Rs 2850 per quintal in Punjab, compared to the previous week's prices of Rs 2958 to Rs 3159 per quintal in Uttar Pradesh and Rs 2880 to Rs 3100 per quintal in Punjab.

The prices indicate that millers are highly interested in purchasing government wheat, given the high market prices.