The recent increase in the offtake of wheat in the Government’s open market auction through the Food Corporation of India has raised concerns about the need for more supplies to help cool prices before procurement starts at MSP. The e-auction conducted on January 15 saw about 875 bidders buying over 1.41 lakh tonnes of wheat at a weighted average rate of ₹2,696/quintal.
States like Assam, Odisha, Himachal Pradesh, Madhya Pradesh, Haryana, Delhi, and others witnessed high participation in the auction, with bid prices going as high as ₹3,308/quintal in Assam. However, there were technical glitches in states like Karnataka, resulting in lower offtake.
To address the issue of wheat procurement and ensure sufficient supply in the upcoming months, the Centre recently held a virtual meeting with Food Ministers of five wheat-producing States. The meeting focused on strengthening procurement mechanisms, setting district-wise targets, expanding procurement centers, and maintaining quality standards.
It is essential for these States to procure the required quantity under the public distribution system to contribute substantially to the central pool. Last year, these five States had a combined share of 26% in the total wheat procurement, and the government aims to increase their contribution in the upcoming season.
Overall, releasing additional wheat quantity under OMSS is seen as a positive step to moderate prices and ensure a smooth procurement process at MSP. More efforts are needed to ensure that the wheat market remains stable until the new crop arrives in the coming weeks.
