OMSS helping in reducing wheat prices, FCI sold 5.40 lakh tonne wheat in 4th e-auction

Sale of wheat by the state-run Food Corporation of India (FCI) to bulk consumers in the open market is helping in containing prices of wheat and wheat flour (atta) in the domestic market, Food Secretary Sanjeev Chopra has said. Out of the 50 lakh tonne of wheat, FCI has a mandate to sell a total of 45 lakh tonne under the Open Market Sale Scheme (OMSS) to bulk users till March 15. This is done through a weekly e-auction.

Chopra told a meeting of State Food Ministers in New Delhi that a substantial quantity of wheat has already been lifted by bidders. "This has reduced prices." The purpose of offloading wheat under OMSS was to improve domestic availability and check price rise. On millets, the secretary said the guidelines for millet procurement and distribution have been revised.

States have been asked to procure millets and distribute them. If there are surplus millets, states have been allowed to distribute them to other states. "We have given permission to Karnataka government to distribute surplus millets to Kerala. We hope in the coming years, we will be able to procure and distribute in a big way," Chopra said. Food ministers from 10 states and union territories, including Andhra Pradesh, Delhi and West Bengal, attended the conference. State food secretaries were also present.

Addressing the conference, Union Minister of State for Food Ashwini Kumar Choubey listed out steps taken to control prices and ensure food to the poor. Wheat sale under OMSS, fixing procurement target of wheat, millets procurement for public food programmes and fortified rice were among the important issues that were discussed in the meeting.

The FCI has sold 5.40 lakh tonnes of wheat to bulk consumers like flour millers in the fourth round of e-auction held on Wednesday. In the previous three rounds, about 18.05 lakh tonnes of wheat was sold under the Open Market Sale Scheme (OMSS) to bulk users as part of steps to cool down retail prices of the foodgrain and wheat flour. The next weekly e-auction will be held on March 8.

"Total quantity of 11.57 lakh tonne wheat was offered and 5.40 lakh tonne wheat has been sold to 1,049 bidders in 23 states," an official statement said. Wheat was sold at an all-India weighted average reserve price of Rs 2,137.04 per quintal during the 4th auction. Maximum demand was for wheat quantities in the range of 100 to 499 tonnes, it added.

"The overall price quoted during the auctions suggests that the market has cooled down and is below Rs 2,200 per quintal on average," the statement noted. Till February-end, about 14.35 lakh tonne wheat was lifted by bidders. It means the OMS sale has brought significant effect in cooling down the price of wheat and atta all over the country which is likely to remain stabilized with the future tenders for open sale, it added.

Out of 50 lakh tonnes of wheat, FCI has the mandate to sell a total of 45 lakh tonnes of wheat under the Open Market Sale Scheme (OMSS) to bulk users till March 15, through a weekly e-auction. About 3 lakh tonne of wheat is earmarked for states governments and 2 lakh tonne for institutions like Nafed for converting it into wheat flour and then selling at Rs 27.50 per kg.