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Informist, Thursday, Jan. 22, 2026

 

By Afra Abubacker

 

NEW DELHI – Wheat sales by Food Corp. of India under the open market sales scheme were uneven across states on Wednesday, with weak offtake in Uttar Pradesh, but strong demand in Punjab, Haryana, and Assam. On Wednesday, FCI offered 107,500 tonnes of wheat under the open market sales scheme and sold 89,748 tonnes or nearly 84%, according to sources. 

 

In Uttar Pradesh, millers and processors bought only 2,230 tonnes, or 28% of the 8,000 tonnes offered in the state. At last week's auction, FCI's wheat sales in the state were moderate at a little over 4,000 tonnes, or nearly 78% of the 5,300 tonnes it offered. 

 

Asked if the corporation's estimates of demand in Uttar Pradesh were inflated, a miller from the state said there was no clear rationale behind FCI's state-wise allocations and often, they appeared random. "UP is carrying surplus wheat and is covered for another 30-40 days. There is no dire need for open market sales in the state at current levels," Sandeep Bansal, a miller from Uttar Pradesh, said. 

 

On Wednesday, FCI sold almost the entire 25,000 tonnes offered in Punjab. In Haryana and Assam, sales were nearly 97% of the 9,500 tonnes and 15,000 tonnes offered, respectively. This is the second auction since FCI resumed open market sales after temporarily suspending wheat auctions in December due to weak demand amid comfortable market supplies.

 

According to market participants, the wheat supply situation is comfortable in most states, except for states such as Punjab and Assam. 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.

 

The new wheat crop in Uttar Pradesh is expected to arrive in about 70-75 days, while fresh arrivals are anticipated to start in Madhya Pradesh from late February. Bansal said wheat availability during Jan-Mar is typically concentrated among a few players, but that pattern has changed this year due to higher private purchases following a good crop last year. The government has pegged a record wheat output in 2024-25 (Jul-Jun) at 117.5 million tonnes, up nearly 4% from last year's production.

 

However, many traders continue to operate on the assumption that supplies are tight. "There is a common belief that only I am holding wheat," he said, noting that this perception discourages stock releases. "They don't offer their stocks easily unless there is counter pressure from the government side," Bansal said.  End

 

Edited by Avishek Dutta

 

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