Centre hikes reserve prices for open-market sale of wheat by 10.86% and rice 3%
The central government has increased the reserve prices of wheat and rice under the Open Market Sale Scheme-Domestic (OMSS-D) for the 2025-26 fiscal year. According to an order issued by the Ministry of Consumer Affairs, Food and Public Distribution on July 10, the reserve price of wheat has been raised by 10.86%, while rice will see a 3% hike effective later in the year. For wheat, the reserve price has been fixed at Rs 2,550 per quintal, applicable for all crop years, including the upcoming Rabi marketing season of 2025-26. This rate is applicable for sales to private buyers via e-auctions, as well as to cooperative organizations such as NAFED, NCCF, and Kendriya Bhandar for distribution through Bharat brand outlets, mobile vans, or large retail chains. The new price represents an increase from the previous rate of Rs 2,300 per quintal in 2024-25 and will remain valid until June 30, 2026. Additional transportation costs will be levied over and above the reserve price. While the Department of Food and Public Distribution (DFPD) has announced the new pricing, the Food Corporation of India (FCI) will determine the quantity of wheat to be released through the scheme at a later date. For rice, the existing reserve prices will stay in place until October 31, 2025, after which the new rates will take effect from November 1. Key changes include: Rice with 25% broken grains: Reserve price raised to Rs 2,890 per quintal (up from Rs 2,800) for sales to private parties and cooperatives via e-auctions. Rice sold to state governments and ethanol distilleries: Increased to Rs 2,320 per quintal (from Rs 2,250). Custom-milled rice (CMR) with 10% broken grains: Revised to Rs 3,090 per quintal (from Rs 3,000). The ministry noted that the 3% increase aligns with the recent hike in the Minimum Support Price (MSP) of paddy. Additionally, a Rs 200/quintal subsidy from the Price Stabilisation Fund for Bharat brand rice—previously offered to central cooperative organizations—will be withdrawn from July 1, 2025. The FCI will also determine the quantity and timing of rice offloading, based on public distribution system (PDS) needs, buffer stock norms, and any exigencies that may arise. Reserve prices for coarse grains have also been set under OMSS-D as follows: Bajra: Rs 2,775 per quintal Ragi: Rs 4,886 per quintal Jowar: Rs 3,749 per quintal Maize: Rs 2,400 per quintal The new pricing strategy is aimed at stabilizing food grain prices and ensuring adequate availability in the open market, especially amid evolving supply-demand dynamics.