Archive · 19 Aug 2026
Government Likely to Offload Wheat Stocks Next Month
The government has a large amount of wheat stored in its warehouses.
It may start selling about 3 million tonnes to traders and large buyers next month.
This is meant to prevent wheat prices from rising too much.
Wheat prices have already fallen somewhat because demand is not very strong and some traders are selling their stocks.
Flour millers believe more government wheat sales could keep prices steady during the festive season.
They also want the government to make wheat exports easier.
The government currently permits some exports but generally requires licenses.
The Food Corporation of India bought more than 35 million tonnes of wheat from farmers this year.
The government is likely to offer 3 million tonnes of wheat under the Open Market Sale Scheme from next month.
The Food Corporation of India holds more than 48.74 million tonnes of wheat against a 20.52-million-tonne reserve requirement.
Wheat prices have recently fallen by Rs 60–Rs 70 per quintal amid muted demand and stock selling by small traders.
Flour millers say releasing wheat could stabilize prices during the festive season but want broader export permissions.
The government purchased more than 35 million tonnes of wheat in the 2026–27 rabi marketing season at Rs 2,585 per quintal.
- Who
- The central government, the Food Corporation of India, traders, bulk buyers and flour millers.
- What
- The government is likely to begin selling surplus wheat through the Open Market Sale Scheme.
- When
- The sales are expected to begin next month; the article does not specify an exact date.
- Where
- The wheat would be sold through the Food Corporation of India's designated platform in India.
- Why
- The aim is to ease supply pressures and prevent a possible rise in wheat prices in the coming months.
Flour Millers' Position
Current Government Policy
Wheat export rules
Flour Millers' Position
Flour millers want wheat exports allowed under the Open General Licence to help stabilize the market.
Current Government Policy
The government has allowed limited wheat and wheat-product exports, but shipments generally operate under a license-based system.
- Expected initial sale
- About 3 million tonnes of wheat
- FCI wheat stocks
- More than 48.74 million tonnes
- Reserve requirement
- 20.52 million tonnes for October 1
- OMSS reserve prices
- Rs 2,600 per quintal for Fair and Average Quality wheat and Rs 2,585 per quintal for wheat under Relaxed Specifications
- Previous OMSS sales
- 0.63 million tonnes sold to bulk buyers in FY26
- Annual welfare allocation
- About 20–22 million tonnes allocated for the Pradhan Mantri Garib Kalyan Anna Yojana
- Permitted exports
- 5 million tonnes of wheat and 1 million tonnes of wheat products