With wheat prices still ruling high despite offloading of Food Corporation of India (FCI) stock in the market, the Centre has decided to do away with freight charges and sell the grain at a reserve price of Rs 2,350 per quintal to bulk users pan India through e-auction. That apart, the government has reduced the price of FCI wheat offered to institutions like Nafed, NCCF and Kendriya Bhandar to Rs 21.50 per kg from Rs 23.50. These institutions are being offered wheat for converting the grain into flour and selling it at a maximum retail price of Rs 29.50 per kg, but now they have been asked to sell at Rs 27.50 per kg.
Last month, the government announced plans to sell 30 lakh tonnes of wheat in the open market from its buffer stock under the Open Market Sale Scheme (OMSS) in order to check rising wheat and wheat flour prices. Out of the 30 lakh tonnes, Food Corporation of India (FCI) will sell 25 lakh tonnes to bulk consumers like flour millers through e-auction, 2 lakh tonnes will be given to states/union territories and 3 lakh tonnes to institutions and state-PSUs at concessional rates for converting wheat into wheat flour. The food ministry said ‘after the announcement of OMSS Policy, the Government of India has observed that the market prices of wheat are still very high’.
India’s wheat production fell to 106.84 million tonnes in the 2021-22 crop year (July-June) from 109.59 million tonnes in the previous year due to heat waves in a few states. The procurement fell sharply to 19 million tonnes this year from around 43 million tonnes last year. The area under coverage for wheat crops in the current rabi (winter-sown) season is slightly higher. The procurement of new wheat crop would commence from March 15.
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