The Government of India has decided that the Food Corporation of India (FCI) will unload 50 LMT Wheat and 25 LMT Rice on the open market in phased manner under the Open Market (Domestic) Sales Scheme[OMSS(D)] for sale by electronic auction. Taking into account the experience of the last 5 electronic rice auctions by FCI, it has been decided that the reserve price will be lowered by Rs 200/qtl and the effective price will now be Rs 2900/qtl. The cost of reducing the reserve price will be borne by the Price Stabilization Fund managed by the Department of Consumer Affairs.
As of 08/07/2023 in one year, wheat prices increased by 6.77% in the retail market and 7.37% in the wholesale market. Similarly, rice prices in the retail market increased by 10.63% and 11.12% in the wholesale market.
Taking into consideration the benefit of over 140 million citizens of the country, the Government of India has made this decision to offer wheat and rice under WHO(D) to private parties to increase availability, moderate the market price increase and control the food inflation. However, it is important to mention that the government is also providing grains to NFSA beneficiaries under their entitlement free of charge as pledged under Pradhan Mantri Garib Kalyan Anna Yojna (PM-GKAY) from 1 January 2023.
Stockpiles are periodically unloaded within the WHO(D) framework to achieve multiple objectives including, but not limited to, disposing of excess stocks, reducing the cost of transportation of grain, improving grain supply during the lean season and the regions in deficit and the moderation of market prices. In the calendar year 2023, wheat and rice are offloaded from the FCI in a phased manner according to the reserve prices set by the Government of India.
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AD/NS