Centre to offload 25 lakh metric tonnes of wheat in open market to moderate price
Public Lokpal
November 29, 2024
Centre to offload 25 lakh metric tonnes of wheat in open market to moderate price
New Delhi: To moderate wheat prices in the open market, the Centre has decided to auction it under the Open Market Sales Scheme (Domestic) [OMSS (D)].
The government has fixed the reserve price at Rs 2325/quintal for wheat of fair and average quality and Rs 2300/quintal for wheat under relaxed specifications up to March 31, 2025 for sale to private parties through e-auction.
The Centre has decided that the Food Corporation of India (FCI) would offload a quantity of 25 lakh metric tonnes (LMT) of wheat in the open market under OMSS (D) for sale through E-auction to flour mills, manufacturers of wheat products, processors and end users of wheat to moderate the price.
The average retail wheat market price is hovering between Rs 3000 and Rs 4000. However, the minimum support price of the wheat is Rs 2425.
The government has estimated wheat production during 2023-24 at a record 1132.92 LMT which is higher by 27.38 LMT than the previous year's production.
However, the market estimation of wheat production is quite low. According to roller and flour miller associations, the production of wheat is around 1050 LMT.
Due to weather vagaries over the past two years and geopolitical tension between the two largest wheat producers and exporters Russia and Ukraine, wheat production in the country remains stagnant. The wheat price has been soaring for the past two years.
Last year also, the government offloaded around 101.5 LMT wheat under OMSS (D).
