Rising Retail Prices: In an effort to control rising retail prices under the Open Market Sale Scheme (OMSS), the central government plans to release 1.5-2 million tonnes of wheat from Food Corporation of India (FCI) stocks in 2023 to bulk consumers such as flour millers. Has been ,
According to data maintained by the Ministry of Consumer Affairs, the average retail price of wheat stood at Rs 32.25 per kg on December 27, higher than Rs 28.53 per kg in the year-ago period. Meanwhile, the price of wheat flour (atta) also remained flat at Rs 37.25 per kg as compared to Rs 31.74 per kg a year ago.
What does the government allow under the OMSS policy?
Under the OMSS policy, the government allows the state-run FCI to occasionally sell food grains, especially wheat and rice, in the open market at pre-determined prices to bulk customers and independent traders.
This is done to increase supply and reduce overall open market prices during lean seasons. According to officials, the objective is to increase supply during the lean season and reduce general open market prices.
“The nodal food ministry has introduced an OMSS policy for wheat for 2023 and plans to release 15-20 lakh tonnes from FCI to bulk users under OMSS,” said an official source. The source further said that the wheat grown in the last two crops would be released from the FCI stock and the rate has not been decided yet.
Another source said wheat is likely to be released under OMSS as the government is comfortable with the stock position of the food grain. Moreover, the prospects of new wheat crop are looking bright as the total acreage so far has been high.
Flour mills demanded to withdraw wheat stock
Even flour millers have demanded the government to remove wheat stocks from FCI godowns to meet the shortage of wheat in the open market, leading to a hike in the wholesale and retail prices of wheat and wheat flour.
Till December 15, about 180 lakh tonnes of wheat and 111 lakh tonnes of rice were available in the central pool.
The supply shortfall is mainly due to a decline in domestic wheat production to 106.84 million tonnes in the 2021-22 crop year (July-June) from 109.59 million tonnes in the previous year due to heatwave in some growing states. The procurement of new wheat crop will start from April 2023.
(With inputs from PTI)
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