Hold 140% more wheat in buffer at start of season: Flour millers urge govt

Flour millers want wheat buffer stocks raised to 18 million tonnes, urge free exports, GST relief on flour and warn of delayed sowing in Punjab due to floods

Ahead of the new wheat sowing season, flour millers have urged the government to hold nearly 140 per cent more stocks in the buffer than the current norm of 7.5 million tonnes at the start of the season to curb volatility in prices.

 

"India requires around 18.4 million tons of wheat every year to meet its PDS requirement. What we are suggesting is that the government build a stock which is equivalent to a full one year requirement at the start of the season itself so that there is certainty in the market and no volatility in prices," Navneet Chitlangia, president of The Roller Flour Millers Federation of India, said.

 

The suggestion, though, is expected to raise Centre's subsidy burden on storage and stretch storage limits.

 

Chitlangia also said that sowing of wheat might get delayed this year in northern states, particularly in Punjab, as silt from the floods that hit the state a few weeks back, is yet to be cleared from the fields in at least five districts of the state.

 

He also urged the government to commission a comprehensive study on the impact of Dried Distillers Grains with Solubles (DDGS) on cattle health and milk quality. The federation said that while DDGS volumes are rising sharply, public studies indicate possible adverse effects on cattle digestion and long-term productivity.

 

"The surplus DDGS has also disrupted the traditional cattle feed market, causing a steep fall in wheat bran prices, which directly impacts flour millers and paradoxically contributes to higher atta, maida and suji prices for consumers," he said.

 

The federation also demanded long-term clarity on the government’s wheat policy, especially the Open Market Sale Scheme (OMSS). 

 

It also said that with adequate wheat stock available with the government as of now it should allow phase-wise liberation of wheat products exports, such as atta, maida, and suji.

 

Presently, export of atta is permitted, but under Advance Import Authorisation, and the millers are demanding free exports of at least 1 million tons of atta.

 

"Opening up wheat products’ exports freely will allow the industry to tap global markets again, give farmers better price realisation and position India as a trusted global supplier," the millers said.

 

The flour millers also demanded reduction of GST rates on household consumer pack sizes of atta, maida, and suji (i.e. up to 25 kgs) from the current 5 per cent to nil.

 

"This will directly benefit the common household and uplift consumption affordability by approximately 1.50 to 2.00 rupees per kg," the flour millers said.

 

The millers also demanded that the flour milling machinery and wheat storage silos be shifted to the 5 per cent GST slab from the prevailing 18 per cent.

 

The millers also wanted that though agriculture is a state subject, but the cess imposed by State Agriculture Mandi Boards be subsumed under GST. 

 

Union Food Minister Prahlad Joshi, in his address to the Roller Flour Millers, said that the Centre will not be able to commit anything on allowing export of wheat products in FY26 unless it is sure on the final production numbers and is satisfied that food security needs of the nation are met.

 

Joshi was responding to the demand put forward by the millers to allow export of more wheat products after Centre permitted bran exports few months back.

 

India banned exports of wheat products such as maida and suji a few years back to control domestic prices. It also does not allow export of wheat.