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Informist, Wednesday, Jan. 14, 2026

 

By Afra Abubacker

 

NEW DELHI - In its first auction since resuming open market sales of wheat, the Food Corp. of India sold 92% of the offered quantity to the market Wednesday. This is the first robust wheat sales in 2025-26 (Apr-Mar), as the agency had sold only 40% of the offered quantity in previous auctions. FCI had temporarily suspended wheat auctions last month due to weak demand amid comfortable market supplies.

 

On Wednesday, FCI offered 100,000 tonnes of wheat under the open market sales scheme, and sold about 92,000 tonnes. In many key states such as Punjab, Haryana, and Assam, buyers bought the entire quantity offered, according to sources.  

 

The strong offtake comes amid FCI lowering the offer quantity to 100,000 tonnes of wheat. Before it suspended the auctions, FCI was offering 200,000 tonnes of wheat every two weeks to the market. Unlike earlier, FCI will now conduct weekly auctions instead of fortnightly.

 

Punjab accounted for the largest share of sales, but millers said FCI's offered quantity in the state was inadequate. "There is no wheat available here. FCI should offer 100,000 tonnes or more per auction to Punjab," Dinam Sood, a miller based in the state, said. 

 

On Wednesday, FCI sold the entire 25,000 tonnes offered in Punjab. The highest bid as per trade sources was INR 2,750 per 100 kg, around INR 200 above the reserve price of INR 2,550, Sood said.

 

Market participants said mandi prices in Punjab rose by about INR 50 per 100 kg after the auction, reflecting firm demand and lower-than-expected supplies from goverment godowns. Besides increasing allocations to the state, millers also said FCI should raise maximum bidding quantity per buyer to 500 tonnes-1,000 tonnes from the current 300 tonnes. Punjab remains heavily dependent on government wheat supplies, especially during lean months, as a large share of wheat from farmers is procured by the government.

 

Meanwhile, FCI's wheat sales in Assam continued to be strong. The state bought the entire 14,000 tonnes on offer, and the highest bid was INR 2,984 per 100 kg, FCI data showed.  

 

In contrast, sales were moderate in Uttar Pradesh, where FCI sold a little over 4,000 tonnes, or nearly 78% of the 5,300 tonnes offered. According to millers, the state currently has reasonable availability of the grain and does not have to heavily rely on government supplies to meet requirements. Unlike Punjab, government wheat procurement is relatively weak in Uttar Pradesh and private purchases are robust.

 

Asked whether depot-wise allocation mismatches weighed on bidding in the state, millers acknowledged some disparity between market expectation and FCI depot offers, but dismissed it as a key factor. "Wheat can easily travel across UP by paying INR 80-INR 100 per quintal (100 kg) as freight. If there was real scarcity, buyers would have taken a shot, but most of them did not," Sandeep Bansal, an Uttar Pradesh miller said.

 

"We can easily conclude that there were no major buyers at INR 2,800 levels," he added. The highest bid in Uttar Pradesh was INR 2,772 per 100 kg, according to FCI data.  

 

The earnest money deposits submitted for Wednesday's tender indicated an aggregate demand of 200,000-250,000 tonnes, suggesting strong demand for government supplies.  End

 

Edited by Vandana Hingorani

 

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