Government will control the rising price of flour in the market, 15-20 lakh tonnes in the open market!

wheat growing In a bid to keep a check on retail prices, the government is looking to move 1.5-2 million tonnes of wheat from FCI stocks next year for bulk consumers like flour mills under the Open Market Sale Scheme (OMSS). Government sources gave this information. According to Consumer Affairs Ministry data, 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. The price of wheat flour also remained flat at Rs 37.25 per kg as compared to Rs 31.74 per kg a year ago.

FCI permission scheme

Under the OMSS policy, the government permits the Food Corporation of India (FCI), a state-run undertaking, to sell food grains, especially wheat and rice, to bulk consumers and private traders from time to time at pre-determined prices in the open market. The objective is to boost supply and reduce general open market prices based on seasonal demand. Government sources said, “The Food Ministry has introduced an OMSS policy for the year 2023 in the context of wheat. Under this, there is a plan to release 15-20 lakh tonnes of grain from FCI for bulk users. ”Sources said that the last wheat will be released from FCI stock and its rate has not been decided yet. Another source said wheat is likely to be released under OMSS as the government has enough stock of the food grain.

Expected bumper yield of new wheat

Moreover, the prospects of the new wheat crop are looking better as the total area under cultivation is higher so far. Even the flour mills have demanded the government to bring wheat stock from FCI godowns to the market to meet the shortage of wheat in the open market. Due to the shortage of wheat in the open market, the wholesale and retail prices of wheat and wheat flour have increased. 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 fall in wheat production to 106.84 million tonnes in the 2021-22 crop year (July-June) from 109.59 million tonnes in the previous year. The procurement of new wheat crop will start from April 2023.