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Informist, Monday, Jan. 5, 2026

 

--FCI official: To resume wheat auctions under open mkt sales scheme next wk 

--CONTEXT: Govt had temporarily suspended wheat open market sales in Dec 

 

By Afra Abubacker 

 

NEW DELHI – The government has planned to resume e-auctions of wheat under the open market sales scheme for 2025-26 from next Wednesday, an official from the Food Corp. of India said. Last month, FCI had suspended wheat auctions due to weak sales and poor buying interest from millers and processors amid ample market supplies.  

 

"The tender will be uploaded on Friday. The auction will happen next Wednesday," an FCI official told Informist. "The offer quantity is yet to be finalised. It will be more than 200,000-300,000 tonnes," he added. Before the suspension, the FCI was offering 200,000 tonnes of wheat per auction. 

                                               

Asked about the frequency of wheat auctions, the official said it is likely be held weekly. Under the 2025-26 open market sales scheme, the FCI had started wheat auctions on Nov. 12. Since then, only two auctions were conducted after the FCI shifted to a fortnightly schedule from weekly rounds due to weak sales. 

 

However, even after offering wheat on a fortnightly basis, the wheat offtake from the FCI struggled to pick up. In its last auction held on Nov. 26, the FCI had sold nearly 80,000 tonnes, or about 40% of the 200,000 tonnes being offered. While overall lifting remained subdued, demand varied sharply across states, with about 80-100% offtake in Punjab and Haryana.

 

"The tender is confirmed, and quantity per bidder may be higher to 400 tonnes from 250 tonnes," Ajay Goyal, chairman, Wheat Products Promotions Society, said. "The earlier tender suspension was unexpected. This tender resumption is a welcome move, as we are in the lean season. The recent surge in prices post suspension will cool off."  

 

The abrupt pause in wheat auctions and the lack of clarity had unsettled the wheat market. There was a narrative that the government was "dumping wheat already in a dead market" and pressuring market prices, Goyal had said earlier.

 

However, the suspension and uncertainty over the timeline of commencement have pulled wheat prices down by 100-INR 200 per 100 kilograms in the past two weeks. Wheat prices in the Vashi market, Mumbai, were INR 3,000 per 100 kg, and in Kota, Rajasthan, were INR 2,525-INR 2,580 per 100 kg, on Monday, according to traders.

 

The market had been expecting the FCI to resume wheat auctions from January. For 2025-26, the government has allocated 3.0 million tonnes of wheat to be sold under the open market sales scheme, unchanged from last year. FCI sells wheat to liquidate excess inventory and stabilise prices in the open market.

 

According to some market participants, FCI is resuming its wheat auction too late. "By the time the wheat comes in (from FCI), it will be the third week of January. The new wheat (from farmers) will start coming by February end in parts like Madhya Pradesh, Gujarat, Maharashtra, and Karnataka," S. Pramod Kumar, a miller based in Bengaluru, said. 

 

In 2024-25, FCI had started wheat auctions in December, and sales were robust, with millers and processors bidding competitively to pick up more wheat from government godowns amid tight market supplies. According to market participants, liquidating stocks through open market sales is a necessity for the government as it holds surplus food grain stocks. As of Dec. 1, wheat stocks with the FCI were up 41% on year at 29.1 million tonnes, and rice stocks were over 11% higher on year at 31.2 million tonnes.  End

 

Edited by Tanima Banerjee

 

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