Flour Millers' Body Calls for Greater Policy Stability, Stronger Industry-Government Coordination

Why It Matters

Stable policies and transparent data are critical to protect farmer incomes, sustain miller profitability, and keep staple food prices affordable for Indian consumers. The industry’s export and liquidity proposals could unlock new revenue streams and reduce financial stress in a tightly margin‑pressed sector.

Key Takeaways

• Wheat production forecast rises to 110.65 million tonnes in 2025‑26.
• Margin pressure intensifies due to limited price pass‑through in milling.
• Industry seeks regular national wheat‑stock data to curb market distortions.
• Call for open export licences on all wheat products, including bran.
• Proposed ECLGS‑type liquidity scheme to ease financial stress on processors.

Pulse Analysis

India’s wheat harvest for the Rabi 2025‑26 season is projected at 110.65 million tonnes, a modest increase driven by higher yields in Madhya Pradesh, Rajasthan and Haryana. While the sown area expanded to 34.8 million hectares, weather anomalies—unseasonal rain and hail—hit key districts in Punjab and West Bengal, tempering gains in those traditional breadbaskets. The overall output still outpaces the previous year’s 109.63 million tonnes, reinforcing India’s position as the world’s second‑largest wheat producer and a critical food‑security pillar for the region.

The RFMFI’s call for policy stability reflects a broader industry frustration with ad‑hoc interventions in the Open Market Sale Scheme (OMSS). Millers report that sharp price swings and rising logistics, packaging and input costs have eroded margins, limiting their ability to pass costs onto buyers. Regular, transparent updates from the Wheat Stock Portal could reduce speculative trading and align farmer expectations with market realities. Predictable OMSS pricing and quantity schedules, negotiated through stakeholder consultations, would provide the certainty needed for long‑term planning across the value chain.

Export flexibility and liquidity support form the third pillar of the federation’s agenda. Open licences for all wheat derivatives, including bran, coupled with freight subsidies, could boost value‑added exports and improve capacity utilisation at processing plants. An ECLGS‑type scheme—mirroring successful government‑backed liquidity facilities—would alleviate cash‑flow pressures on millers facing tight margins. Together, these measures aim to safeguard farmer incomes, ensure affordable staple prices for consumers, and position India’s wheat sector for sustainable growth in a volatile global environment.