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Informist, Thursday, Feb. 19, 2026

 

By Afra Abubacker

 

NEW DELHI – Food Corp. of India's wheat sales under the 2025-26 open market sales scheme remained weak for the second straight week, with the offtake slipping to 44% in Wednesday's auction from 50% in the previous one. Millers and processors reduced purchases at FCI's auction amid abundant availability of the grain in local markets, according to sources. Meanwhile, demand in Uttar Pradesh was nearly absent, with only one miller participating in the auction. 

 

In its eighth round of auction under the open market sales scheme, FCI offered 140,000 tonnes of wheat Wednesday, of which it sold about 44% or 61,440 tonnes. The corporation has recently raised its weekly offerings ahead of the government's new crop procurement, which typically begins around late March. However, demand has not kept pace as mandi prices in many states are ruling close or below FCI's effective reserve prices of wheat, discouraging participation in the auctions.  

 

On Wednesday, demand was particularly weak in Uttar Pradesh, where only one miller bought a negligible 1% of the 10,500 tonnes of wheat offered, sharply lower than 13% sales in the previous auction. "Just 100 tonnes were bought by one miller. Ex-godown wheat is available at INR 2,525-INR 2,535 per 100 kg," Sandeep Bansal, a miller based in the state, said. FCI's effective reserve prices for wheat in Uttar Pradesh were INR 2,601-INR 2,635 per 100 kg. 

 

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

 

In Punjab, FCI offered 34,000 tonnes of wheat and sold 86% or 29,100 tonnes. FCI's wheat sales slipped more sharply in Assam and Haryana. Of the 27,000 tonnes offered in Assam, the corporation sold only 56% or 15,100 tonnes. In Haryana, offtake declined to 58% as FCI sold only 6,980 tonnes, against 12,000 tonnes offered. 

 

In January, these states were lifting almost the entire offered quantity. However, FCI's wheat sales have been declining with the beginning of new crop arrivals in some markets. Expectations of bumper crop arrivals in the coming months across wheat-growing states are also pressuring mandi prices.

 

FCI did not sell any wheat on Wednesday in several states, including Madhya Pradesh, Maharashtra, and Rajasthan, reflecting ample market supplies at competitive prices.  End

 

Edited by Tanima Banerjee

 

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