Karnataka Roller Flour Mills Request Higher Wheat Allocation From FCI Ahead of Diwali

Karnataka roller flour mills have approached the Food Corporation of India (FCI) to request an increase in the weekly allocation of wheat under the Open Market Sale Scheme (Domestic), or OMSS-D. The association is seeking a national weekly offer of 3 lakh tonnes and 15,000 tonnes specifically for Karnataka to ensure sufficient supplies ahead of Diwali.

Representing over 40 mills that process more than 18 lakh tonnes of wheat annually, the Karnataka Roller Flour Mills Association stated that the national offer of 1.07 lakh tonnes in the October 21 e-auction was insufficient to meet market demand.

In that auction, Karnataka received only 6,000 tonnes, which met about 17 per cent of the members' estimated weekly requirement of 34,600 tonnes. The association's requested allocation of 15,000 tonnes per week would account for 5 per cent of the proposed national allocation. With Diwali falling on November 8, the association urged FCI to implement the enhanced allocation starting from the October 28 auction to manage peak festive demand for products like atta, maida, and suji.

The association also requested that FCI prioritise Punjab-origin, non-durum wheat, raising concerns about the suitability of supplies from other origins. According to the representation, durum wheat imparts a yellowish tint to flour, rendering it unsuitable for certain atta, maida, and food-processing applications.

Data from the recent e-auctions highlighted tight market conditions. In the October 21 auction, all 1,300 tonnes of wheat offered ex-Ludhiana were sold at an average winning price of ₹3,179 per quintal, while 4,130 of the 4,700 tonnes offered ex-Bhopal were sold. OMSS-D winning prices in Madhya Pradesh, Rajasthan, and Haryana increased by 6 to 8 per cent between the October 14 and October 21 auctions.

Locally, mill-delivered wheat prices in Bengaluru rose by 3.6 to 6.3 per cent between October 16 and October 23. Prices for Madhya Pradesh-origin wheat increased from ₹3,200 to ₹3,400 per quintal, and Rajasthan-origin wheat rose from ₹3,400 to ₹3,600 per quintal.

The association noted that raising the national weekly offer to 3 lakh tonnes could release approximately 60 lakh tonnes into the market over a 20-week period, compared to approximately 30 lakh tonnes released last year.

"The request by Karnataka flour mills highlights the critical balance required between supply management and regional demand, particularly during peak festive seasons. For businesses dependent on raw commodity inputs, localized price volatility and allocation constraints present immediate operational hurdles. A predictable and adequately distributed supply scheme helps stabilize input costs for processors, ensuring that consumer pricing remains balanced during periods of high seasonal demand." — Dr. Shishir Gupta, Founder & CEO, StartupLanes