In view of huge stock piles, the government is taking into account cutting reserve price of rice by almost Rs 500 per quintal for bulk buyers to boost its sale through open market. While, wheat price will continue to be the same for remaining period of 2019-20. The government is considering downward revision of reserve price of rice from Rs 2,785 per quintal to Rs 2,250 per quintal in order to boost sale from central pool stock under the Open Market Sale Scheme (OMSS) in 2019-20.
As per the reports, the government currently hold 23.1 million tonnes (MT) of rice and 37.3 MT of wheat. The total food grain stock stands at about 60 MT as on November 1. Food Corporation of India (FCI) has decided to sell 10 MT of wheat to bulk consumers this fiscal, about 40% more than the previous year.
The base price of wheat is Rs 2,080 per quintal. During the last fiscal, FCI had sold 7 MT of wheat. The sale of wheat and rice to bulk buyers is to make space for the new crop. The current foodgrain storage capacity in the country is around 88 MT, with over 75 MT covered and 13 MT covered area plinth.
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