The government is expected to begin open market sales of wheat to bulk buyers such as flour millers from its buffer stock held by the Food Corporation of India (FCI) next month. This initiative is intended to prevent potential price increases during the upcoming festive season. Last year, the FCI started open market sales in June and sold a record 10 million tonnes (MT) to bulk purchasers. Despite the current adequate supply situation, there is a possibility of price spikes during the festive season due to increased demand. Currently, the FCI holds 25.89 MT of wheat, exceeding the buffer requirement of 20.52 MT for October 1. An official note indicated that after fulfilling the needs of the public distribution system and other welfare programs, which require approximately 18.4 MT, there will be sufficient stocks available for market interventions if needed. The government is monitoring wheat prices closely, which have been stable for the past six months. Open market sales will commence if there is a potential rise in prices. As of Thursday, the modal retail price of wheat was ₹28 per kg, unchanged over the last six months. For the current fiscal year, the food ministry has allocated 2.5 million tonnes of wheat for open market sales from the FCI’s stocks. The FCI will sell wheat at ₹2,325 per quintal, excluding transportation costs, which is lower than the prevailing market price of around ₹2,500 per quintal. Officials confirmed that there is no wheat shortage in the country and that these stock limits aim to improve supplies. The export ban on wheat, imposed in May 2022, is expected to remain in place, and there are no plans to alter the import duty structure on wheat. Inflation in wheat was 6.95% in July, but due to substantial open market sales from FCI stocks, inflation has remained in single digits since August 2023. The agriculture ministry estimates that wheat output for the 2023-24 crop year (July-June) will be 112.92 MT.