India fixes wheat reserve value for open market sale at ₹2,300/quintal

The Indian authorities has introduced the open market sale scheme (OMSS) coverage underneath which the reserve value of wheat has been fastened at ₹2,300 per quintal and rice at ₹2,800 per quintal. This time, the Authorities has mentioned transport prices shall be added to the reserve value, in contrast to final yr when there was one charge throughout the nation.

The Meals Ministry mentioned “the quantum of shares to be offloaded and timing of e-auction, contemplating shares holding on the related level of time could also be determined by the Meals Company of India (FCI) in session with the Ministry. It has additional stipulated that solely a surplus above the mixed requirement to run the Nationwide Meals Safety regulation and different welfare schemes, be launched with out touching the buffer norms and extra amount of two million tonnes (mt).

Shares on July 1

Because the annual requirement of wheat underneath public distribution system and different schemes is about 18.4 m, whereas the buffer norm on April 1 is 7.46 mt; the Authorities should set facet for OMSS the amount above 27.9 mt. The FCI had 28.26 mt of wheat and 48.5 mt of rice (together with 23.71 mt of paddy when it comes to rice) within the Central Pool inventory on July 1, 2024.

“For millers, this step was most awaited and is a welcome one. However, this time freight shall be added, which was demanded by business. Final time in northern States, OMSS wheat sale was much less as millers within the South have been instantly buying from FCI on the identical charge,” mentioned Rahul Chauhan of IGrain India. As a result of uniform charge throughout the nation, there was a document sale 10 mt wheat underneath OMSS throughout 2023-24, he mentioned.

The brand new coverage will enable commerce to work independently as they have been doing earlier, Chauhan mentioned and hoped that extra amount of wheat will come to the market lowering burden on FCI.

From August 1?

Nevertheless, some consultants query the federal government’s resolution because it was earlier claimed as an achievement underneath One Nation One Price slogan and there’s no justification given as to why it’s eliminated now.

The coverage additionally permits the sale of wheat from FCI to Central Cooperative organisations, like NAFED, NCCF and Kendriya Bhandar for the aim of direct gross sales to shoppers underneath “Bharat” at ₹2,300/quintal. The Centre additionally pays about ₹10 subsidy from the Worth Stabilisation Fund to those businesses to promote atta at ₹275 per 10-kg bag.

Whereas the OMSS coverage shall be legitimate until Match 31, 2025, the rice coverage has been made with retrospective efficient from July 1 and that of wheat can begin from August 1, if the Authorities permits FCI.