In a letter addressed to Meals Minister Piyush Goyal and Meals Secretary Sanjeev Chopra, NIFMF President Sanjay Puri mentioned: “At the moment, atta (wheat flour) costs differ considerably throughout totally different areas, regardless of a uniform wheat worth nationwide (underneath OMSS). This discrepancy signifies that the advantages of the transport price subsidy will not be being handed on to customers,” Puri mentioned.
Based on NIFMF, the ex-mill worth of atta in Delhi (North) is ₹2,600/quintal, Hyderabad (South) is ₹3,500/quintal, Kolkata (East) is ₹Rs 3,100/quintal and Mumbai (West) ₹3,120/quintal. Whereas the reserve worth has been mounted uniform at ₹2,125 for URS (underneath relaxed specification) kind and ₹2,150/quintal for FAQ (honest common high quality).
Purchase direct from farmers
“We historically buy wheat immediately from farmers at harvest and keep restricted shares for the low season. Past this, our reliance shifts to the Meals Company of India (FCI) as a consequence of our monetary and storage limitations,” Puri defined within the letter, despatched to the minister on February 26.
Admitting that OMSS scheme performed a crucial position in guaranteeing grain availability and stabilising wheat and flour costs, he mentioned FCI used to historically units wheat costs at auctions primarily based on a base worth at main rising and procurement places reminiscent of Ludhiana, plus transportation and dealing with prices, providing consumers the choice for supply at particular depots or to rearrange their very own transportation.
“Nonetheless, we’re involved concerning the current shift to a uniform pricing mannequin throughout India… Though designed to attain pricing standardisation, this coverage inadvertently results in a subsidy on dealing with and incidental bills (roughly ₹95 per quintal), along with freight prices, thereby additional widening the hole between the financial price (₹2,700/quintal) and the public sale reserve worth at public sale (₹2,125/quintal). This measure, reasonably than benefiting the supposed recipients, disrupts market equilibrium, discourages direct procurement by non-governmental gamers, and adversely impacts farmers, the milling business, and the patron demographic alike,” Puri mentioned.
Such inconsistencies burden the meals subsidy system, discourage millers from buying at harvest, and place undue stress on authorities procurement, disrupting market dynamics, the letter mentioned.
The federal government has already offered about 9 million tonnes of wheat by means of weekly e-auction to processors since June 28 and will quickly cease in northern states as soon as procurement of contemporary crop begins.
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