Wheat sale under OMSS may start in July

31-May-2025 12:43 PM

New Delhi. The Food Corporation of India (FCI) may be allowed by the Union Food Ministry to begin weekly e-auctions for the sale of wheat under the Open Market Sale Scheme (OMSS) in late June or early July.

The move aims to increase the supply of wheat in the domestic market and control the recent price rise. After fulfilling all distribution and supply commitments, the government is expected to have at least 60 lakh tonnes of surplus wheat stock available for sale under OMSS.

This year, government procurement of wheat reached the highest level in the past four years. In addition, a significant quantity of carryover stock was already present in the central pool, pushing total availability above 400 lakh tonnes. Despite this, wheat prices have begun to rise in wholesale markets.

Although storage limits have been imposed, they have yet to produce any visible impact on prices. To maintain market stability, the government is preparing to initiate wheat sales under OMSS, leveraging its abundant stock.

During the financial year 2023–24, the government sold 94.10 lakh tonnes of wheat under OMSS, whereas only 35 lakh tonnes was sold in 2024–25. This led to an increase in the central pool's outstanding stock.

Meanwhile, the private sector also holds a substantial stock of wheat. The government expects that a combination of stock limits and OMSS sales will help bring down prices, as traders, stockists, and large producers may be compelled to release their grain more quickly.

Whether these measures will succeed in stabilizing the market remains to be seen.