Centre announces release of 50 LMT wheat under OMSS (D) 2023

Government of India has decided that Food Corporation of India (FCI) may offload additional quantity of 20 LMT of wheat in open market under OMSS (D) 2023 for sale through E-auction to flour mills/private traders/bulk buyers/manufactures of wheat products like previous years. Thus, so far 50 LMT (30+20 LMT) of wheat have been decided to offload under OMSS (D), 2023.

The reduction in reserve price along with additional offloading of 20 LMT of wheat will collectively help in reducing market price of wheat and wheat products for consumers.

Secretary, DFPD held a Video Conference meeting with Food Corporation of India and the representatives of Flour Millers/ Associations/Federations/ Atta, Suji product manufacturers on 21.02.2023, to review the lifting of stocks in 2nd auction conducted under OMSS (D), 2023. Besides, the flour mills were advised to bring down the prices of atta and other products in line with the reduction in market prices of wheat.

It is pertinent to mention that the meeting of Committee of Minister under chairmanship of Hon’ble Home Minister, Shri Amit Shah, was held on 25.01.2023 to review the prices of essential commodities. Committee decided to release 30 LMT wheat from FCI stock through Open  Market Sale Scheme (OMSS) as follows:

a) 25 LMT be offered through the e-auction route to traders, flour mills, etc as per the usual process followed by FCI. Bidders can participate in e-auction for a maximum quantity of 3000 MT per region per auction.

b) 2 LMT be offered to State Governments for their schemes @10,000 MT/State without e-auction.

c) 3 LMT be offered to Govt PSUs/cooperatives/Federations such as Kendriya Bhandar/NCCF/NAFED etc without e-auction.

Subsequently, this Department made allocation of 3 LMT of wheat to Kendriya Bhandar/ NAFED /NCCF as per their requisitions. Kendriya Bhandar, NAFED and NCCF were allocated 1.32 LMT, 1 LMT and 0.68 LMT respectively.

Further, the rate of wheat on 10.02.2023 has been reduced from Rs.23.50/kg to Rs. 21.50/Kg (Pan India) for sale to NCCF/NAFED/ Kendriya Bhandar/State Govt. Cooperatives/ Federations etc as well as community kitchen /charitable/NGO etc subject to stipulation that they will convert wheat to atta and sell it to consumers at MRP Rs.27.50/Kg.

Also, in order to reduce the price of wheat and atta, Department of Food & PD, in consultation with Ministry of Finance, has decided on 10.02.2023 that:

a. The reserve price for sale of wheat under OMSS will be Rs 2350/Qtl (Pan India) for FAQ and Rs.2300/Qtl (Pan India) for URS wheat of all crops including RMS 2023-24 without adding any transportation cost component which will help supply of wheat to general public in different part of the country at a reasonable price.

b. States may be allowed to purchase wheat from FCI for their own scheme at above reserve prices without participating in e-auction.

After announcement of OMSS(D) policy 2023, Department observed that prices of wheat and atta has come down but still inflation figure for January, 2023 was 3 months high at 6.52%.  For checking inflationary trend in food economy, Department decided on 17.02.2023 to further reduce reserve price upto 31st March, 2023 to Rs 2150/Qtl (Pan India) for wheat (FAQ) and Rs. 2125 Qtl (Pan India) for wheat (URS) of all crops including RMS 2023-24 for sale of wheat to private parties and State Governments for their own scheme.

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