India resume e-auction of wheat

The Indian government is set to resume electronic auctions of wheat through the Food Corporation of India (FCI) after suspending weekly sales in early December. The move comes amid sluggish demand from millers, adequate private stocks, and optimistic harvest prospects for the 2025/26 season supported by favorable weather conditions and strong sowing progress.

According to sources, only 0.53 mln tons of wheat were released into the market from FCI stocks in November and early December under the Open Market Sale Scheme (OMSS), against a target of 3 mln tons for FY26. Due to the muted response from flour millers, the weekly OMSS sales were halted.

FCI officials indicated that the corporation may sell more than 2 mln tons of wheat in FY26, compared with 3 mln tons sold from surplus stocks in FY25. However, trade sources warn that further sales of government-held wheat could depress market prices and discourage private purchases ahead of the new 2026/27 season starting on April 1.

The wheat price under OMSS for bulk buyers such as millers has been fixed at Rs 2,550 per quintal for the 2025/26 season, excluding freight, while prevailing market prices range between Rs 2,800 and Rs 2,850 per quintal. Meanwhile, wheat inflation eased further in November 2025 to 0.33%, down from 2.04% in October.

As of January 1, FCI holds 27.65 mln tons of wheat, significantly above the buffer norm of 13.8 mln tons. At the same time, the government is stepping up rice sales, aiming to offload a record 8 mln tons in FY26, partly for the ethanol blending program, even as central rice stocks remain well above prescribed buffer levels.

Tags: wheat, India