The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi has cleared sale of about 10 million tonnes (MT) of wheat via the Open Market Sale Scheme (OMSS) to bulk buyers. The government has taken this decision of sale of wheat from FCI stock in order to boost domestic supply and check prices.
The reserve price under OMSS has been fixed at Rs 1,500 per quintal plus freight charges for old crop and five percent premium for new crop. Food Corporation of India (FCI) will be selling the wheat through e-tendering process with an aim to improve domestic supply of wheat and check prices. This will also reduce storage pressure on the state run corporation.
In the last few days, wheat prices have firmed up. The wholesale price of wheat has increased to Rs 19 per kg in the national market in July, from Rs 16.10 per kg in the same month last year. In 2013-14, the government had announced sale of 8.5 MT of wheat via OMSS, but was able to sell only 5.8 MT, earning about Rs 9,310 crore.
The FCI had a wheat stock of 40 MT till early this year against the requirement of 20 MT. The country had produced a record 95.60 MT of wheat in the 2013-14 crop year.