Informist, Thursday, Jul. 24, 2025

--Food secy: Govt worried over edible oil inflation
--CONTEXT: Food Secy Sanjeev Chopra at vegetable oil producers' event
--Food secy: See no immediate need to start wheat open market sales
--Food secy: Current wheat supply comfortable, no concern over prices

NEW DELHI - The government sees no immediate requirement to start open market sales of wheat in 2025-26 (Apr-Mar) as prices are largely stable and the market has adequate supply of the grain, Food Secretary Sanjeev Chopra said. "There is adequate supply in the market...We only procured (30 million tonnes). We have procured very healthy quantity," Chopra said on the sidelines of an event organised by the Indian Vegetable Oil Producers' Association. "The prices are already stable. So, there is no need (of open market sales)," he added.

The government typically begins sale of wheat in the open market from July or August. It has set a reserve price of INR 2,550 per 100 kg for open-market sales of wheat in the rabi marketing year 2025-26 (Apr-Mar).

According to data from the consumer affairs department, the all-India average wholesale wheat price was INR 2,817 per 100 kilograms, down from INR 2,821 per 100 kg a month ago. On a yearly basis, prices were nearly 1% higher from INR 2,791.35 per 100 kg.

In FY25, the government sold only 3 million tonnes of wheat under the open market sales scheme as it prioritised rebuilding its stock reserves. The reserve price was INR 2,325 per 100 kg. In FY24, government sold 9.4 million tonnes of wheat, an all-time high, under the scheme to check prices in view of General Elections. The reserve price for fair and average quality wheat in FY24 was 2,150 rupees per 100 kg, and 2,125 rupees for reduced-specification wheat.

Unlike the last two years, the government's wheat purchases this year are 30.1 million tonnes, higher than 26.6 million tonnes procured in FY25. However, the government's wheat procurement is short of its revised target of 33.3 million tonnes for FY26.

The government is concerned about high edible oil inflation, which has remained elevated even as overall food inflation has eased, Chopra said. Edible oil inflation has been raging around 20?ross all oils over the past year, and that is something which is a concern, Chopra said.

In June, the food price index rose 1.1% on month, the highest monthly rise since October. Prices of oils and fats climbed 0.7% on month and 17.75% on year.

Amid sticky prices, Chopra emphasised the need for India to "garner greater self-sufficiency in edible oils." The country currently imports around 60% of its edible oil requirement, a dependency that undermines both food security and economic stability.

Chopra acknowledged the significant gap in yields between Indian oilseeds and global standards. For instance, soybean yield in India is 185% lower than the global average, and sunflower yield trails by more than 78%. To address this, the government is promoting precision agriculture, speed breeding, and genome editing to boost productivity.

To enhance transparency and strengthen regulatory compliance in the sector, Chopra said the Department of Food and Public Distribution will soon notify the Vegetable Oil Products (Regulation) Order, 2025. A key component of this initiative will be the Vegetable Oil Products, Production and Availability (VOPPA) framework, which is a real-time tracking system to monitor production, prices, and availability. End

Reported by Afra Abubacker

Edited by Deepshikha Bhardwaj and Ashish Shirke

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