In a proactive move to stabilize the retail prices of wheat and atta (flour), the Food Corporation of India (FCI) is actively participating in the government’s market intervention initiative. FCI’s contribution comes through the Open Market Sale Scheme (Domestic) [OMSS(D)], which enables the corporation to offer wheat at a reserve price of Rs. 2125/- per quintal. This reserve price is aligned with the prevailing Minimum Support Price (MSP) of wheat.
Under this scheme, a substantial quantity of 2.00 Lakh Metric Tons (LMT) of wheat is made available in each weekly auction, taking place across the country. More than 480 depots are involved in this initiative, ensuring nationwide coverage. As of September 21, 2023, a total of 13 e-auctions have already taken place, resulting in the sale of 18.09 LMT of wheat under the OMSS(D) scheme.
One noteworthy observation is the declining trend in the weighted average selling price of wheat. In August 2023, the selling price stood at Rs. 2254.71 per quintal. However, by September 20, 2023, it had decreased to Rs. 2163.47 per quintal during the e-auction. This decline indicates that market prices for wheat have cooled down in the open market.
“Furthermore, it’s essential to highlight that in each weekly e-auction conducted, the quantity sold has not exceeded 90% of the quantity offered. This indicates that there are ample stocks of wheat available across the country, ensuring a steady supply”.
The successful implementation of the OMSS(D) policy by FCI has effectively contributed to price stability for wheat in the open market. It has also ensured an adequate supply of wheat in the central pool, supporting the continuation of the OMSS(D) policy for the remainder of the 2023-24 period.
Through these concerted efforts, FCI and the government are working together to maintain price control and ensure the availability of wheat, a staple food item, for the benefit of consumers across India.
