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Informist, Thursday, Feb. 6, 2025

 

By Afra Abubacker

 

NEW DELHI – In a bid to cool wheat prices, the Food Corp. of India increased the offered quantity to be sold under open market sales scheme by 1.6 times, or 250,000 tonnes, Wednesday, an FCI official said. The agency sold nearly 99% of wheat on offer on Wednesday, and the average selling price fell to the lowest since auctions started in December for 2024-25, he added. 

 

On Wednesday, the average selling price of FCI's wheat at the auction fell to INR 2,646.4 per 100 kg, the lowest since December. Prices fell as the agency increased the offered quantity, said millers. "Numbers are good. But they have to increase it further to 400,000-450,000 tonnes," Dinam Sood, a Punjab-based miller said. 

 

On Thursday, the all-India average wholesale price was INR 2,973.2 per 100 kg, up INR 204 per 100 kg, or 7.4% on year, amid tight supply in the market. Retail prices of atta in Delhi have risen INR 7 per kg, or nearly 19.4% on year, to INR 37 per kg. 

 

Amid firm mandi prices, millers and processors have been actively lifting wheat from government godowns. Since December, FCI offered 1.3 million tonnes wheat and has sold 98.5%, or 1.28 million tonnes. The government has allowed FCI to sell 2.5 million tonnes of wheat till the end of March. Last year, FCI sold a record 9.4 million tonnes of wheat under the open market scheme. 

 

Trade sources say wheat mandi prices are likely to be pulled down in coming months as the new crop is around the corner. "After the first week of April, new crops should start coming to market in Punjab," Sood said. "Wheat products like atta have become expensive. Demand will slow down at these levels," he added. 

 

Additionally, the 2025-26 wheat marketing year is likely to open with a stock of 10.0-10.5 million tonnes, Sood said. Last year, the opening stock was only 7.5 million tonnes. According to Sood, the government has enough ammunition to control wheat prices if prices surge. 

 

However, concerns about the wheat crop amid a warm winter this year run a risk to wheat production. Higher-than-normal temperatures during the grain-filling stage affect yield.

 

To ensure higher wheat procurement from April, the government has to bring down market prices, Sood said. The minimum support price for wheat in 2025-26 (Apr-Mar) is INR 2,425 per 100 kg, down INR 548 from average all-India wheat mandi rates. In Mumbai wheat prices are around INR 3,300 per 100 kg, and INR 3,100 per 100 kg in Indore, Madhya Pradesh. End

 

Edited by Deepshikha Bhardwaj

 

 

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