States might be allowed to purchase wheat from FCI for their own scheme at above reserve prices without participating in e-auction
The government has reduced the reserve price for sale of wheat under OMSS to Rs 2,350 per quintal (pan-India) for FAQ and Rs 2,300 per quintal (pan-India) for URS wheat of all crops, including RMS 2023-24, without adding any transportation cost component. This will help supply of wheat to general public in different part of the country at a reasonable price.
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“In order to reduce the price of wheat and atta, the Department of Food & PD, in consultation with Ministry of Finance, has decided that 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. This will help supply of wheat to general public in different part of the country at a reasonable price,” the Ministry of Consumer Affairs, Food & Public Distribution said in a statement.
It added that the states might be allowed to purchase wheat from FCI for their own scheme at above reserve prices without participating in e-auction.
“Further, the rate of wheat has been reduced to Rs 21.50 per kg for sale to NCCF/ NAFED/ Kendriya Bhandar/ state government cooperatives/ federations, etc., as well as community kitchen/ charitable/ NGO, etc., engaged in relief operations/ running relief camps for migrant labourers/vulnerable groups,” the ministry said.
It added that this concessional rate for NCCF, NAFED, Kendriya Bhandar, state government cooperatives and federations, etc., will be applicable with the stipulation that they will convert wheat to atta and offer it to public at an MRP not exceeding Rs 27.50 per cent kg.
The meeting of a committee under the chairmanship of Home Minister Amit Shah was held on January 25, 2023, to review the prices of essential commodities. The Committee decided to release 30 LMT (lakh metric tonnes) wheat from FCI stock through the Open Market Sale Scheme (OMSS):
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* 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.
* 2 LMT be offered to State Governments for their schemes @10,000 MT/State without e-auction.
* 3 LMT be offered to Govt PSUs/cooperatives/Federations such as Kendriya Bhandar/NCCF/NAFED etc without e-auction. This will be subject to the stipulation that they convert wheat to atta and offer it to public at an MRP not exceeding Rs 29.50/kg.
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.
FCI has sold 9.26 LMT of wheat out of 25 LMT to traders, flour mills, etc in course of the first e-auction held on February 1 and 2, 2023.
After announcement of OMSS Policy, GoI has observed that the market prices of wheat are still very high. It has also been observed that due to inclusion of freight charges in base prices for auction under OMSS, the auction rates in States, which are away from Punjab, Haryana and Madhya Pradesh, are very high especially in North-East region, Eastern Region and Southern region.
