Centre to offload additional 20 lakh tonnes of wheat in open market to cut prices
1 min read . Updated: 21 Feb 2023, 07:32 PM IST
Premium- The government has decided that Food Corporation of India will offload an additional quantity of 20 lakh tonnes of wheat in open market under the open market sale scheme
NEW DELHI : The Centre on Tuesday announced that it will offload an additional 20 lakh tonnes of wheat in the open market to bring down the prices of wheat and wheat flour.
On 25 January, the government had announced sale of 30 lakh tonnes of wheat in the open market from its buffer stock to check rise in prices of wheat and wheat flour (atta).
According to Ministry of Consumer Affairs, Food & Public Distribution, the government has decided that state-owned Food Corporation of India (FCI) will offload an additional quantity of 20 lakh tonnes of wheat in open market under the Open Market Sale Scheme (OMSS).
The stocks will be for sale through e-auction to flour mills/private traders/bulk buyers/manufactures of wheat products.
"So far, 50 lakh tonnes (30+20 lakh tonnes) of wheat have been decided to be offloaded under the OMSS. The reduction in reserve price along with additional offloading of 20 lakh tonnes of wheat will collectively help in reducing market price of wheat and wheat products for consumers," the statement said.
The secretary in the Ministry of Consumer Affairs, Food & Public Distribution (DFPD) held a video conference meeting with the FCI and the representatives of Flour Millers/ Associations/Federations/ Atta, Suji product manufacturers today to review the lifting of stocks. The flour mills were advised to bring down the prices of atta and other products in line with the reduction in market prices of wheat.
Further, the rate of wheat on 10 February has been reduced from Rs.23.50/kg to Rs. 21.50/Kg (Pan India) for sale to NCCF/NAFED/ Kendriya Bhandar/State Govt. Cooperatives/ Federations etc as well as community kitchens/charitable/NGOs etc subject to the stipulation that they will convert wheat to atta and sell it to consumers at MRP Rs.27.50/Kg.
The announcement of revision in uniform reserve price across the country by the government would benefit consumers across the country.
Under the OMSS policy, the government allows FCI to sell food grains, especially wheat and rice, at predetermined prices in the open market from time to time to bulk consumers and private traders.
India’s retail inflation inched up to a three-month high of 6.52% in January even as wholesale inflation eased to a two-year low. Inflation based on CPI breached RBI’s upper tolerance limit of 6%, after falling to 5.88% and 5.72% in the previous two months.
