The Indian government has raised the reserve price for wheat and rice, including brokens, to be sold under the open market sale scheme (OMSS). This includes broken rice for the production of ethanol by distilleries. 

The Committee of Secretaries (CoS), at its meeting on June 26, also fixed a reserve price for coarse grains to be sold through OMSS and will be valid till June 30, 2026. In addition, the Department of Food and Public Distribution (DFPD) will add transportation costs to the reserve price.

An office memorandum from the Ministry of Finance, seen by businessline, said wheat will be sold through OMSS at ₹2,550 a quintal for all crop years, including 2025-26 rabi marketing season, against ₹2,325 fixed for fair average quality (FAQ) and ₹2,300 for under relaxed specifications (URS) wheat till now. 

This will come into force when the Centre announces the OMSS for wheat later this fiscal. The new reserve price for rice will come into force from October 1 and the current rates will be valid till October 31.

Ample stocks

The Centre sells wheat and rice held by the Food Corporation of India (FCI) at its warehouses under the OMSS to control food inflation. The decision to sell is supported by the FCI holding record rice stocks of 37.99 million tonnes (mt) as of June 1 in addition to 32.25 mt of unmilled paddy that can yield 21. 6 mt of rice. It also has 36.92 mt of wheat and 0.46 mt of coarse grains - both at three-year high.

Over the last two years, the Centre controlled wheat prices to some extent by selling wheat under OMSS.

In the case of rice to be sold directly to State governments, corporations of State governments and community kitchens, the price has been increased to ₹2,320 from ₹2,250 a quintal. The sale has a cap of 32 lakh tonnes (lt). 

For Bharat brand rice

Sale of rice to distilleries for the production of ethanol will be at ₹2,320 a quintal against ₹2,250 now, with a cap of 52 lt. Similarly, the sale of rice directly to small private traders, entrepreneurs and individuals will be at ₹2,890 (₹2,800 currently). Central cooperative organisations such as Nafed, NCCF and Kendriya Bhandars will be offered rice at ₹2,480 (₹2,400) by the Centre for the sale of Bharat brand rice.

Rice with 25 per cent brokens to be sold to private traders, cooperatives and cooperative federations through e-auctions, the reserve price has been increased to ₹2,890 (₹2,800) a quintal. The sale of rice with 10 per cent broken under the rice mill transformation scheme will be made in the open market at ₹3,090 (₹3,000). Similarly, broken rice produced under the rice mill transformation scheme will be offered in the open market at ₹2,320 (₹2,250).

For coarse cereals, the CoS has fixed ₹2,775 a quintal as reserve price for bajra, ₹4,886 for ragi, ₹3,749 for jowar, and ₹2,400 for maize. 

Riders

The memorandum said the quantum of wheat and rice stocks to be offloaded in the open market and the timing, considering stocks holding at the relevant point of time, could be decided by the Food Corporation of India (FCI) in consultation with DFPD. This will be after taking into consideration the stocks for public distribution system (PDS) requirement and buffer norms. An additional quantity of 20 lt of wheat and 30 lt of rice should also be set aside for use in case of emergency.

The CoS also decided to discontinue the ₹200 a quintal support from the price stabilisation fund for sale of rice to Central cooperative organisations such as Nafed, NCCF and Kendriya Bhandar from July 1. The organisations were distributing Bharat rice to the public from the rice procured directly from the FCI at a lower price.

Published on June 28, 2025