New Delhi: In a bid to enhance the availability of wheat and rice in the open market and regulate prices, the Government of India has initiated the offloading of wheat and rice through weekly e-auctions since June 28, 2023. As part of the Open Market Sale Scheme (Domestic) [OMSS(D)], the government has allocated a total of 101.5 LMT wheat and 25 LMT rice for offloading.
Under OMSS(D), wheat is offered at a reserve price of Rs. 2150/Qtl for FAQ and Rs. 2125/Qtl for URS, while the reserve price for rice is set at Rs. 2900/Qtl. The first e-auction of this phase, conducted on June 28, 2023, witnessed the sale of 0.86 LMT wheat in the open market.
To meet the growing demand for wheat, the weekly offering in the e-auction has been progressively increased from the initial 2 LMT to the current 4.5 LMT. Consequently, the weekly sale of wheat has risen to over 4 LMT, and until January 24, 2024, a total of 71.01 LMT wheat has been sold under OMSS(D).
The first e-auction of rice under OMSS(D) for the fiscal year 2023-24 took place on July 5, 2023. In an effort to boost rice sales in the open market, the Government of India reduced the reserve price from Rs. 3100/Qtl to Rs. 2900/Qtl, with a revised minimum and maximum quantity of 1 MT and 2000 MT, respectively.
With regular advertising by FCI regional offices for wider outreach, the sale of rice has steadily increased. Until January 24, 2024, a total of 1.62 LMT rice has been sold in the open market under OMSS(D), marking the highest sale in any year for rice to private traders.
Additionally, as part of the Bharat Atta scheme, the Central Government is supplying wheat to cooperative agencies like NAFED/NCCF/Kendriya Bhandar/MSCMFL. Out of the total 101.5 LMT of OMSS(D), 4 LMT has been allocated under this scheme. Semi-government/Cooperative agencies are obtaining wheat at Rs. 17.15/kg (revised from Rs. 21.50/kg) to produce atta and sell it to the general public at no more than Rs. 27.50/kg. Until January 29, 2024, 2,80,456 MT wheat has been sold to these agencies.
The Government of India reiterates its commitment to ensuring food security, price stability, and supporting consumers and stakeholders through strategic interventions in the wheat and rice markets.
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