Govt. to offload extra 20 lakh tonnes wheat in open market

The Centre has announced its decision to offload an additional 20 lakh tonnes of wheat in the open market to bring down the prices of wheat and wheat flour. The proposal to sell stocks in the open market was taken by a group of ministers.

On January 25, the Centre 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 an official statement, 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 added.

Earlier, in the last two weekly e-auctions, about 13.05 lakh tonnes wheat was sold and third e-auction will be held in tomorrow. FCI will offer 11.72 lakh tonnes of wheat from 620 depots across the country during the third e-auction to be held at 11 am on February 22.

FCI, the government's nodal agency for procurement and distribution of food grains, had around 156.96 lakh tonnes of wheat as of January 26 in the buffer stock. On April 1, the country would have a wheat stock of 96 lakh tonnes, just above the buffer norm requirement of 75 lakh tonnes. 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.