The prices of good quality A&B category wheat remains unchanged at Rs 900 per quintal. The C and D category wheat are mainly used in the manufacture of cattle and other animal foods and is unfit for human consumption.

While mill owners say this boycott is indefinite, the flour millers are believed to have come to an informal agreement among themselves against lifting the wheat from FCI untill it further lowers its prices to Rs 650 per quintal or lower than the open market price, which is around Rs 700-730 per quintal.

Speaking to The Financial Express Maharashtra Roller Flour Millers Association president Nandlal Whadhwa said: "We have decided to boycott purchases of FCI wheat. We will not purchase the FCI wheat as the open market price is low compared to that offered by FCI. The open market price for Sona wheat (high-quality wheat) is at Rs 730 per qunital, which too is expected to go down soon."

Even the flour millers in Punjab and Haryana are said to have formed a syndicate demanding that FCI sell wheat (A&B category) at Rs 450-500 per quintal against Rs 900 per quintal that it charges.

New arrivals of wheat in the mandies are said to be putting pressure on the overall prices of wheat sold in the open markets. Traders say, the prices are likely to go down by around 20 per from the current level of around Rs 750 per quintal of sona (high) category wheat.

"If this happens, which seems more likely, the FCI will have little choice but to further lower its prices from the current level of Rs 900 per quintal for high-quality wheat and Rs 750 per quintal for second grade (C&D)," Wadhwa said.

Interestingly, roller mills owners are planning to purchase wheat from Rajastan, Haryana and Punjab mandies where sona wheat is available at around Rs 572-650 per qt, which is very cheaper.

Grain traders say, the government has reduced wheat prices of categories unfit for human consumption. But there is no certifying agency that can take decision in grading of wheat.

"What is the basis for categorisation of wheat by the FCI?", asks one of the leading millers. "By paying few rupees to the FCI officer wheat categories can be changed without any problems".

It may be noted that even if the rate is reduced to Rs 750 per qt the good quality of open market wheat is stll available at Rs 720 per qt and hence no one would like to purchase the inferior quality of wheat which the FCI is trying to sell at Rs 750 per qt, resulting in further deterioration of the huge stock of wheat piled up at the various FCI godowns.

Meanwhile, it is understood that FCI is proposing to dispose of 50 lakhs of wheat through auction in Punjab and Hayana. Wadhwa feels, the FCI should sell the above wheat in Maharashtra, since the state is the major wheat buyer owing to lack of mandis in the state as also it is non-wheat producing state.