India's Wheat Auction in FCI’s Open Market Sale

Indian flour mills purchased 0.141 million tonnes of wheat in the Food Corporation of India’s (FCI) open market sale this week. The government increased its weekly auction offer by 50%, raising it to 0.15 million tonnes. Despite the increased supply, top bid prices in 13 states exceeded USD 0,36 per kg, indicating the need for more wheat releases to stabilize prices before procurement begins in April at the minimum support price (MSP) of USD 0,29 per kg.

High Offtake Across States

In the e-auction conducted by FCI on January 15, around 875 bidders purchased over 0.141 million tonnes of wheat at a weighted average price of USD 0,32 per kg. States like Assam, Odisha, Himachal Pradesh, Madhya Pradesh, Haryana, Delhi, the Northeast (excluding Assam), Jammu & Kashmir, and Telangana recorded 99–100% offtake of the offered quantity.

Karnataka saw a slightly lower offtake at 82% of the 0.007 million tonnes offered due to technical glitches that prevented some buyers from uploading their earnest money deposits (EMD) on time. A flour miller in Karnataka noted, “Next week, 100% offtake is likely as there is no supply,” adding that the highest bid price reached USD 0,35 per kg.

Price Trends and Regional Demand

Punjab reported 91% offtake from the 0.024 million tonnes offered, a significant increase from 0.0145 million tonnes the previous week. Uttar Pradesh recorded 92% offtake from 0.019 million tonnes, up from 0.015 million tonnes. Bihar also saw higher demand, with 94% of the 0.01 million tonnes offered being lifted, compared to 0.007 million tonnes the previous week.

The highest bid prices ranged from USD 0,31 per kg in Chhattisgarh to USD 0,40 per kg in Assam. Meanwhile, the lowest bid prices were USD 0,28 per kg in Madhya Pradesh and Punjab, and USD 0,32 per kg in Odisha.

Concerns Over Supply and Price Stabilization

Veena Sharma, former secretary of the Roller Flour Millers’ Federation of India, stressed the need for additional wheat releases. “The market is dry, and fresh crop is still 8–10 weeks away. Prices have reached record highs, posing a threat to procurement at MSP,” she said.

Government Prepares for 2025–26 Wheat Procurement

On January 15, the Centre held a virtual meeting with Food Ministers from five wheat-producing states—Uttar Pradesh, Madhya Pradesh, Bihar, Gujarat, and Rajasthan. The focus was on improving procurement mechanisms for the 2025–26 period (April–June).

Key action points included:

• Setting district-level procurement targets.
• Expanding procurement centers to remote areas.
• Ensuring timely payments to farmers.
• Maintaining stock quality standards.

The government urged these states to procure at least the quantity required for their public distribution systems.

Previous Procurement Figures

In 2024, the government purchased 26.605 million tonnes of wheat, with the five states contributing 26%. However, the combined target for these states was 16.21 million tonnes, of which only 7 million tonnes (43%) were procured.





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