To provide relief to over 140 crore citizens of India, the Centre to offload 50 LMT of wheat and 25 LMT of rice in the open market
- Press Information Bureau
- August 10, 2023
The Government of India has announced that the Food Corporation of India (FCI) will slowly offload 50 lakh metric tonnes (LMT) of wheat and 25 LMT of rice under the Open Market Sale Scheme (Domestic) [OMSS(D)] for sale via e-auction.
It has been agreed to reduce the reserve price by Rs. 200/qtl (US$ 2.41/qtl) and the current effective price is Rs. 2,900/qtl (US$ 35.02/qtl), considering the experience of the previous five FCI rice e-auctions. The Price Stabilisation Fund, which is managed by the Department of Consumer Affairs, will be used to cover the cost associated with the reserve price reduction.
As of August 7, 2023, the price of wheat has increased by 6.77% in the retail market and 7.37% in the wholesale market. Similarly, rice prices in the retail market have gone up by 10.63% and 11.12% in the wholesale market.
The government of India has decided to distribute wheat and rice under OMSS(D) to private parties in order to increase availability, reduce the rise in market prices, and control food inflation. This decision was made with the benefit of the nation's 140 crore citizens in mind. However, it is important to note that as promised under the Pradhan Mantri Garib Kalyan Anna Yojna (PM-GKAY) with commenced on January 1, 2023, the government is also giving foodgrains to National Food Security Act (NFSA) beneficiaries free of charge cost in accordance with their entitlements.
Stocks are occasionally offloaded under OMSS(D) to accomplish several objectives, including, among others, disposing of excess stocks, reducing the carrying cost of food grains, increasing the supply of food grains during lean seasons and deficit regions, and regulating market prices. Rice and wheat will be gradually offloaded by FCI in 2023 in accordance with reserve prices set by the Government.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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