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Informist, Thursday, Oct. 29, 2026

 

By Afra Abubacker

NEW DELHI – The Food Corp. of India sold all the wheat it offered in its auction Wednesday amid tight market supply and strong demand ahead of Diwali. In its third round of auctions under the open market sales scheme, the corporation offered over 100,000 tonnes of wheat, and millers and processors bought nearly 95,000 tonnes, according to data compiled from FCI. 

 

FCI auctioned wheat in more than 20 states on Wednesday and achieved 100% offtake in 17 states. Major wheat-producing states such as Punjab, Haryana, Uttar Pradesh, and Madhya Pradesh lifted the entire offered quantity. Purchases were also strong in consuming states such as Delhi, Karnataka, Maharashtra, and Rajasthan. FCI also sold the entire quantum on offer in eastern markets such as Bihar, Odisha, and West Bengal amid firm market prices, data showed. 

 

"It is not just Diwali demand. Private stocks are tight, and there is a strong genuine routine demand for FCI wheat," Sandeep Bansal, an Uttar Pradesh-based miller, said. With wheat prices trading above INR 3,250 in many markets, millers' participation in FCI wheat auctions has grown. "People are waiting for discounted wheat from the FCI, but they are only releasing limited stocks to sell wheat above their economic costs," he added. 

 

The government is offering wheat under relaxed-quality specifications at a discounted rate of INR 2,585 per 100 kg, and fair and average quality grain at INR 2,600 per 100 kg. These are the reserve prices for wheat varieties, excluding transportation and other handling charges. For 2026-27, FCI bears an economic cost of INR 3,145.4 per 100 kg due to expenses incurred for procurement of wheat from farmers, handling, and storage. 

 

On Wednesday, FCI offered 25,000 tonnes of wheat in Punjab, 12,000 tonnes in Haryana, and 8,000 tonnes in Uttar Pradesh, and millers and end users, such as biscuit markets, bought the entire quantity offered. FCI sold all 6,000 tonnes offered in Madhya Pradesh and 5,000 tonnes each offered in Delhi and Karnataka.  

 

The highest bid for FCI wheat came from Maharashtra at INR 3,350 per 100 kg, followed by INR 3,324 from Karnataka, and INR 3,316 from Assam. Most flour mills had bid strongly over INR 3,000 per 100 kg, up from the reserve price of INR 2,585 per 100 kg, indicating strong demand for FCI wheat amid tight market supplies. In its first wheat auction on Oct. 14, the highest bidder was from Punjab at INR 3,080 per 100 kg. 

 

Asked if FCI is likely to offer more wheat in the coming auctions, Bansal said, "I don't expect any such surprises. The current (selling) prices are prevailing near their economic costs." FCI offloads wheat through weekly auctions to liquidate the stocks it procured from farmers and improve market supplies. However, most of the wheat on offer is of relaxed quality, as the government increasingly bought shrivelled and broken wheat grain from farmers amid widespread crop damage. End

 

Edited by Saji George Titus

 

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