Rising wheat prices also have a subsidy aspect, thanks to open market sales

According to traders, the price spike this time could last a little longer as the Centre's ability to intervene in the market through open market sales might get squeezed due to dwindling stocks

A few weeks back, wheat prices in Delhi’s markets soared to Rs 3,360 a quintal. The jump came despite the Centre pumping in large quantities of wheat through the open market sale scheme (OMSS) of the Food Corporation of India. The government recently said it was keeping a close watch on wheat prices while world markets were seen to be under pressure due to an oversupply.

 

In 2023-24 (FY24), the government pumped in 10 million tonnes of wheat from its inventories to cool prices. However, in November last year, only around 2.5 million tonnes was allocated for open sales, of