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FCI Stops Wheat Auction Under OMSS For Now - Here`s Why
The government in January had announced plans to sell wheat in the open market from its buffer stock under the OMSS in order to check rising wheat and wheat flour prices.
New Delhi: State-owned Food Corporation of India (FCI) on Monday said wheat sale at discounted rates via e-auction to bulk consumers, institutions, and state governments has been stopped for now as procurement of the fresh crop begins next month. Under the Open Market Sale Scheme (OMSS), the FCI has sold 33 lakh tonnes of wheat till March 15 through e-auction, out of which, buyers have lifted 31 lakh tonnes of the grain so far.
They have to lift the balance quantity by March 31. "The last e-auction of wheat to bulk consumers was undertaken on March 15. The auction has been stopped for now as the procurement of the fresh crop will pick up in the coming days," FCI Managing Director Ashok K Meena told PTI. (Also Read: India Can Build Something Equivalent To AI ChatGPT? Ashwini Vaishnaw Says Big Announcement In Few Weeks)
The sale of wheat to institutions like Nafed and state governments under the OMSS has also been stopped. The wheat auction will resume only if there is a need to intervene in the market, he added. (Also Read: Credit Cards For UPI Payment? Bank Of Baroda Enables This Service - Check How To Activate It)
The government in January had announced plans to sell wheat in the open market from its buffer stock under the OMSS in order to check rising wheat and wheat flour prices.
A total of 50 lakh tonnes of wheat was allocated for sale under the OMSS. Out of the allocated quantity, FCI was mandated to sell a total of 45 lakh tonnes of wheat to bulk users till March 15 through weekly e-auctions.
About 3 lakh tonnes of wheat was earmarked for state governments and 2 lakh tonnes for institutions like Nafed for converting it into wheat flour and then selling at Rs 27.50 per kilogramme.
Under the OMSS, the reserve price of fair and average (FAQ) quality wheat was also fixed at a discounted rate of Rs 2,150 per quintal, while for Under Relaxed Specifications (URS) wheat at Rs 2,125 per quintal.
FCI is the government's nodal agency for the procurement and distribution of food grains. The government aims to procure 34.15 million tonnes wheat in the 2023-24 marketing year starting April, higher than 18.79 million tonnes purchased in the previous year.
Wheat procurement had declined last year due to a fall in domestic production and higher exports.
However, the government has projected a record wheat production at 112.18 million tonnes in the 2023-24 crop year (July-June) as per the second estimate of the agriculture ministry.