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Informist, Wednesday, Feb. 4, 2026

 

By Afra Abubacker

 

NEW DELHI – Food Corp. of India's wheat sales under the open market sales scheme remained subdued on Wednesday, with millers and processors buying only about two-thirds of the offered quantity, reflecting weak demand for government wheat amid comfortable market supplies. On Wednesday, FCI offered 126,000 tonnes of wheat and sold about 83,000 tonnes or 66%, according to sources. This was a slip from 73% offtake on Jan. 28, and 84% on Jan. 21. FCI had sold 92% of the offered quantity on Jan. 14, when the corporation resumed wheat auctions after temporarily suspending them in December.

 

Demand for wheat was lower even in those states--Punjab, Assam, and Haryana--which until last week saw millers and processor picking up almost the entire quantity on offer. While in Punjab FCI ended up selling nearly 95% wheat of offer, the offtake in Assam and Haryana fell below 90%. These states had seen a near total buying of FCI wheat last week.  

 

 

In Punjab, FCI offered 26,000 tonnes and sold 95% or around 24,630 tonnes. The highest bid was around INR 2,700 per 100 kg, around INR 200 above the reserve price of INR 2,550, said Dinam Sood, a miller based in Punjab. Around 200 tonnes of wheat were unsold in Punjab due to logistics constraints. "More wheat quantities should be offered from FCI depots nearer to milling stations," Sood said. He added that the Punjab market can absorb around 100,000 tonnes of wheat per auction. 

 

The reserve price for wheat is set uniformly at INR 2,550 per 100 kg across India, excluding transportation costs and other applicable taxes. Most states are offered wheat that was procured from Punjab and Madhya Pradesh, and buyers in states farther away from these major producing regions incur higher logistics costs.

 

In Assam, FCI sold 20,405 tonnes of wheat or about 89% of the 23,000 tonnes on offer. The highest bid was INR 2,984 per 100 kg, FCI data showed. In Haryana, FCI sold 8,790 tonnes or 88% of the 10,000 tonnes offered, and the highest bid was at INR 2,635 per 100 kg.

 

In Uttar Pradesh, FCI sold 3,625 tonnes or 45% of the 8,000 tonnes on offer, according to millers. Uttar Pradesh wheat markets are well supplied, and the grain is readily available at lower prices. Unlike Punjab, government wheat procurement is relatively weak in Uttar Pradesh, and private purchases are robust.

 

According to Rahul Chauhan, director, IGrain India, tender prices in FCI wheat auctions have been declining over successive auctions, reflecting subdued demand. "During the current season, wheat prices have not touched the INR 2,950 levels, compared with INR 3,200 levels seen in February last year," Chauhan said in a note. 

 

Wheat mandi prices are around INR 2,400-INR 2,525 per 100 kg in Madhya Pradesh markets, below the minimum support price of INR 2,585 per 100 kg, he added. Prices have remained under pressure compared with last year, as good production and comfortable stock levels with both the government and private players have ensured ample supplies.

 

"With four to five tenders remaining and the arrival of the new crop set to begin in Maharashtra, Gujarat, and Madhya Pradesh, further pressure on prices cannot be ruled out," Chauhan said. "If weather conditions remain favourable and a bumper crop materialises, the market could face additional downside pressure.  End

 

Edited by Akul Nishant Akhoury

 

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