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Informist, Thursday, Feb. 12, 2026

 

By Afra Abubacker

 

NEW DELHI – Food Corp. of India sold barely half the wheat it offered in the seventh round of auction under the 2025-26 open market sales scheme, as demand remained weak amid ample market supplies and the beginning of new crop arrivals. On Wednesday, FCI offered 139,500 tonnes of wheat and sold 50% or about 70,000 tonnes, according to sources. This was a sharp fall from 66% offtake in the previous auction on Feb. 4. The corporation had increased its offer quantity in many states this week, but demand remained subdued, sources said.

 

Though the government has allowed trade to hold wheat by removing stock limits last week, processors and millers did not respond strongly at the auction. "People are getting private stocks easily. There is no demand for OMSS except in Punjab, Assam, and to some extent Haryana," Sandeep Bansal, an Uttar Pradesh-based miller, said.

 

Wheat sales fell across major states, with Uttar Pradesh witnessing the sharpest decline. FCI sold only 1,330 tonnes or 13% of the 10,500 tonnes offered in the state. "The market scenario is such that wheat is available around INR 2,600-INR 2,625 per 100 kg, at discounts to FCI's reserve prices," Bansal said. The effective reserve prices for wheat in Uttar Pradesh are around INR 2,625-INR 2,635 per 100 kg, after adding freight and handling charges. 

 

The Centre has fixed the 2025-26 reserve price for wheat at INR 2,550 per 100 kg, excluding freight costs and other charges. At the auction, most states are offered wheat procured from Punjab and Madhya Pradesh, and buyers in states farther from these major producing regions incur higher logistics costs.

 

However, demand remained firm in Assam. FCI sold 19,200 tonnes of wheat, or about 74% of the 26,000 tonnes on offer in the state. The highest bid was INR 2,904 per 100 kg, according to FCI data. Assam has consistently shown strong demand, as millers in the state find buying wheat from FCI more lucrative than sourcing it through private channels. "Assam is a long-distance market. Private truck supplies are costlier than FCI's freight charges," Bansal said. The effective reserve price for wheat in Assam is INR 2,800-INR 2,890 per 100 kg.

 

In Haryana, FCI sold 7,840 tonnes or 71% of the 11,000 tonnes offered, and the highest bid was at INR 2,615 per 100 kg, above the reserve price of INR 2,550 per 100 kg. 

 

Punjab continued to record strong demand. Of the 28,000 tonnes offered, FCI sold 90% or around 25,460 tonnes. The highest bid was around INR 2,665 per 100 kg, slightly less than last week's INR 2,700 but still higher than the state's reserve price of INR 2,550. Though a major wheat producer, millers in the state rely on government wheat supplies during the lean season, as most of the grain is procured by the government during peak arrival season. End

 

Edited by Saji George Titus

 

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