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Informist, Thursday, Feb. 26, 2026

 

By Afra Abubacker

 

NEW DELHI – The Food Corp. of India has concluded its wheat auctions under the open market sales scheme for the financial year 2025-26 (Apr-Mar) on a weak note with abundant supplies at competitive rates in local markets dampening participation. Across eight rounds of auction, FCI sold about 634,000 tonnes of wheat to processors and millers, according to sources. This is just 21% of the 3 million tonnes allocated for open market sales in 2025-26, among the weakest open market sales of wheat in recent years. In the final rounds, FCI could barely sell 40-50% of its offering.

 

In FY25, FCI had sold 2.96 million tonnes of wheat, nearly the entire quantity allocated for open market sales. Through 14 weekly auctions, the agency had sold 98.6% of the 3.0 million-tonne allocation. In FY24, a general election year, it had sold a record 9.41 million tonnes in a tight market situation.

 

"There will be no more wheat tenders (for the year)," a government official said. FCI did not hold the wheat auction Wednesday. The last auction was on Feb. 18. Typically, FCI concludes its auctions in early March, when the corporation starts preparing for wheat procurement operations for the following year.

 

Wheat acreage in the crop year 2025-26 (Jul-Jun) has risen nearly 2% on year to 33.4 million hectares, according to government data. "Wheat production for the current year is estimated at around 117.0 million tonnes. If realized, this would mark the second consecutive year of high output," Rahul Chauhan, director, IGrain India, said in a note. Last year, the country's wheat output was at a record 117.9 million tonnes. 

 

The open market sales of wheat in FY26 were erratic, with the government temporarily suspending auctions for a month in December after some trade bodies raised concern about FCI supplies entering an already well-stocked market and exerting further pressure on prices. Before that, in November, the government had lowered the frequency of the auctions to fortnightly from weekly.

 

FCI had started wheat auctions for FY26 on Nov. 12. That month, it held only two fortnightly auctions owing to poor buying interest from millers and processors amid ample supplies.  

 

FCI sells wheat to millers and processors under the open market sales scheme to liquidate stocks held above buffer norms and moderate market prices. As of Feb. 1, it had 25.6 million tonnes of wheat in its granaries, up 58% on year, according to the corporation's data.

 

Given the comfortable wheat stocks in the country, the Centre on Feb. 13 opened up wheat exports after nearly four years. It has permitted 2.5 million tonnes of wheat to be shipped out of the country. It has also allowed the exports of an additional 500,000 tonnes of wheat products, over and above the 500,000 tonnes announced Jan. 16. India had curbed wheat exports in May 2022.  End

 

Edited by Rajeev Pai

 

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