SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Food Ministry seeks CCEA approval for additional 3 MT wheat sale under OMSS

31 Aug 2012 Evaluate

A move aimed at containing price rise of wheat and offloading surplus stocks the Food Ministry is contemplating to sell additional three million tonne (MT) wheat. This wheat will be sold to bulk consumers such as flour millers in the open market under the open market sale scheme (OMSS) for which the ministry has placed the proposal before the Cabinet Committee on Economic Affairs (CCEA). 

In order to ease storage pressure from its godowns during monsoon season the government in month of June under OMSS had allocated sale of three million tonnes of wheat. Further the total quantity of wheat to be sold in the open market would reach six million tonnes in this fiscal if CCEA approves for the above placed proposal by the ministry.

Of the approved 3 million tonnes of wheat in June, the government has already released 1.3 million tonnes of wheat and the entire quantity allocated in the first tranche has been sold to bulk users by the Food Corporation of India (FCI). The government will release another one million tonnes of wheat to be sold next month and the remaining quantity will be released thereafter. Although the Commission for Agriculture Costs and Prices (CACP) had suggested releasing 10 million tonnes of the grain, the ministry has decided to release a total of six million tonnes of wheat under the OMSS.

The wheat which was been sold under OMSS by FCI at a floor price of Rs 1,170 per quintal through the tender process has now been hiked to Rs 1,285 from early this month. Meanwhile, due to short supply of the grain in the open market and fear that poor rain may lead to shortage of wheat production in the current Rabi season, the wholesale prices of wheat have been rising.

Due to record production and procurement in the last few years the government's stocks have risen sharply. As on August 1, the government has total stock of 76 million tonnes of foodgrains, out of which wheat is 47.52 million tonnes. The storage capacity is 71.41 million tonnes.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×