Wheat prices in the domestic market have been steadily increasing. Last week, wheat prices surged by more than 8%, reaching ₹3200 to ₹3300 per quintal. This increase is due to limited wheat supply in the markets and high demand from millers and processors. The government is selling wheat from its stock to millers under the Open Market Sale Scheme (OMSS). However, due to the limited quantity of wheat available, millers are also forced to make substantial purchases from open markets. With limited arrivals of wheat in the mandis, competition among buyers has intensified, leading to a continued upward pressure on wheat prices. Government wheat purchases are happening at prices up to ₹600 per quintal higher than the minimum reserve price, which is having a positive impact on the market. Producers and traders do not have sufficient stock of wheat, and prices have reached their highest level for the marketing season. However, due to profit-taking, a slight dip in prices was observed this week. The government of India, through the Food Corporation of India (FCI), is proposing the sale of 1 lakh tons of wheat in weekly auctions, with 98-99% of the wheat being purchased. Industry experts believe the government may increase wheat sales to help bring down prices. This year, farmers have increased the area planted with wheat, and favorable weather conditions are expected to result in a good harvest. As a result, the milling and processing industry expects a rise in government wheat sales. The government has allocated 25 lakh tons of wheat stock for sale under the OMSS until March 31, 2025. However, the government has limited wheat stock available, making a significant price drop unlikely. Wheat prices are expected to remain high until the new harvest arrives.