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Informist, Monday, Jul. 6, 2026

 

MUMBAI – The Department of Food and Public Distribution has announced the reserve prices for foodgrains to be sold through open market sales in 2026-27. The reserve price of wheat has been set at INR 2,600 per 100 kg for fair and average quality grain and at INR 2,585 for grain under relaxed specifications, reflecting the government's procurement of substantial quantities of weather-damaged wheat from farmers. Last year, the wheat reserve price was INR 2,550 per 100 kg. 

 

The current reserve price is valid until Jun. 30, 2027, and excludes transportation charges. However, the government is yet to announce the quantity and timing of wheat sales to private millers under open-market sales.

 

Last year, wheat open market sales began in November but progressed unevenly, with temporary suspensions and irregular auction schedules. Although the government earmarked 3 million tonnes of wheat for open-market sales, it could sell only about 21% of it amid ample market supplies and weak demand. 

 

RICE

The government has set the open market sale base reserve price for 100% broken rice at INR 2,000 per 100 kg. The price will be revised every quarter by a committee. The price for 25% broken rice has been set at INR 2,890 per 100 kg till Oct. 31, and will be raised to INR 2,970 from November 2026 to June 2027, reflecting a 3% increase in the minimum support price of paddy paid by the government to farmers. 

 

The government has set differential pricing for rice based on the procurement year, amid piling inventories from previous crops dating back to 2023-24 or earlier.  

 

The government has kept the reserve price of rice for ethanol production to distillers unchanged at INR 2,320 per 100 kg till the end of October. During Nov-Jun, distillers can buy rice at INR 2,390 per 100 kg. For state governments, the rice prices are kept the same as those for ethanol production. 

 

The government is selling rice at the lowest price to state governments and distillers. "For the purpose of supplying rice to ethanol distilleries for production of ethanol, old or broken rice should be utilised to the extent feasible," the food department said to FCI in a letter dated Jul. 2. 

 

Amid criticism over diverting food-grade rice for fuel production, the government has improved the quality of rice supplied under the public distribution system by reducing the broken-grain content to 10% from 25%. "Distribution of improved-quality rice under PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana) and other welfare schemes will also be undertaken in a phased manner, ensuring a smooth transition to the revised specifications across all states," the government had said earlier. 

 

Private parties can buy 10% broken rice from the government through auctions at INR 3,090 per 100 kg until October and INR 3,180 per 100 kg from November onwards. For retail sales under the 'Bharat' brand, cooperative agencies can buy rice at INR 2,480 until the end of October and at INR 2,550 from November onwards. 

 

For coarse grains, the government has set reserve prices for bajra at INR 2,900 per 100 kg, ragi at INR 5,205 per 100 kg, jowar at INR 4,023 per 100 kg, and maize at INR 2,410 per 100 kg, to be sold through e-auctions to private parties. End

 

Reported by Afra Abubacker

Edited by Saji George Titus

 

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