The scheme is used by FCI to offer grains, mainly wheat and rice, in the open market by e-acquirement as a mechanism to encourse and Control Food Inflation. Why is the increase in the reserve price of India’s main cereals important?

The new reserve pricks

The Department of Food and Public Distribution (DFPD) Under the Ministry of Consumer Affairs, Food and Public Distribution, which has fixed the reserve pricks of wheat and rice, has not announced Whatshellities. Sold in the open market. That will be decided by FCI.

Wheat: On July 10, The DFPD Fixed a Reserve Price of Rs 2,550 per quintal for wheat to be solved parties through E-Actions; Central Cooperative Organisations (Such as Nafed, NCCF, and Kendriya Bhandar) for Sale under the ‘bharat’ brand; And to community kitchen.

This reserve price is for wheat of all coope years including the current rabi marketing season (RMS) 2025-26, and will be valid until june 30 next year. It is 10.86 per cent higher than the reserve price fixed in the last fiscal (2024-25), which was Rs 2,300 per quintal.

Rice: The reserve price of rice has been fixed in the range of Rs 2,320 to Rs 3090 per quintal, depending on who the buyer is. The existing Reserve Pricks of Rice Will Continue Until October 31.

From November 1, The Reserve Price of Rice Containing 25 Per Cent Broken Grains for Sale to Private Parties and Cooperative Federations By E-Action Will Be Rs 2890 Per Quintal. This is 3.21 per cent more than the existing reserve price of Rs 2,800 per quintal.

The reserve price of rice for sale to state governments and their corporations, and to Ethanol distilleries for productions of Ethanol Will Increase to Rs 2,320 Per Quintal from the Existing Rs 250 PER QUISTAL.

And the reserve price for Sale of Custom Milled Rice (CMR) with 10% broken rice under the rice milling transformation scheme in the open market parties thruggh e-maise has been raised to Rs 3090. From Rs 3,000 per quintal.

Coarse grains: The reserve price for the sale of bajra to private parties through e-auction. 2,400 per quintal.

Why the increase in pricks

The ministry has said that 3 per cent increment in the reserve price of rice is in line with the money in the minimum support price (MSP) of paddy. The MSP for paddy (common) and paddy (grade a) has been fixed at Rs 2,369 and RS 2,389 per quintal – 3 per cent higher than the last season.

Howver, the increment in the reserve price of wheat is high. The MSP for Wheat was increased by 6.59 per cent-to Rs 2,425 per quintal for rms 2025-26 from Rs 2,275 per quintal in 2024-25.

Bumper Crop, Better Procurement: Wheat Production Reached A Reached A Reached High of 117 Million Tonnes in 2024-25, The third Advance Estimates of Production of Foodgrains Released by The Agriculture Ministry on May 28 Show. Government Procurement for the Central Pool Too Was Higher Compared to The Previous Season. In the current RMS 2025-26, Wheat Procurement Had Reached 30 Million Tonnes by July 6, Higher than the 26.5 million Tonnes of Last Year.

The sufficient stocks: India’s granaries are full. Rice Stocks are at record levels, and wheat stocks are at their highst level in the last four years.

According to FCI data, 37.9 million tonnes of rice and 36.9 million tonnes of wheat was available in the central pool as on june 1. Coarse grains were available.

With an encouraging outlook for kharif in view of high sowing and a good money, the government has the scope to offer wheat and rice in the open market. This will also keep in check the inflationary trends in foodgrains.