FCI to offload 30 LMT wheat to ease prices
Currently, the retail prices of a kilogram of wheat flour are around Rs.40-45, up about 33% from May 2022; aiming to get prices below Rs.30 per kg by March
The Food Corporation of India (FCI) will offload 30 LMT wheat from the central pool to the market and government agencies withing two months to arrest rising prices. The government expects atta (wheat flour) prices to fall to around Rs.29.50 per kg in the retail market.
The sale will be through various routes under the Open Market Sale Scheme (domestic), and e-auctions will start in January through March.
Wheat is a staple in India, which is the world’s largest consumer of the cereal. Last year, wheat prices rose sharply in India following weak output and the Russia-Ukraine war (possible leakage), like in most parts of the world – wheat prices in neighbouring Pakistan have increased manifold. India had to stop exports to arrest prices.
However, wheat prices have continued to soar, with reports suggesting wheat stocks are running dry in several parts of the country.
To address the rising price of wheat, a group of ministers headed by Home Minister Amit Shah met today to inspect the buffer stock position of the country.
The group approved various options to offload wheat into the market:
- Wheat will be offered to flour millers, bulk buyers, etc, through e-auction for a maximum quantity of 3,000 MT per buyer, per auction, from an FCI region under e-auction.
- Wheat will also be offered to state governments/UTs without e-auction.
- Further, wheat will be offered at concessional rates of Rs 2,350 per quintal to government PSUs/cooperatives/Federations, Kendriya Bhandar/NCCF/NAFED, etc, without e-auction.
The government said that buyers will have to convert wheat to atta and offer it at a Maximum Retail Price of Rs. 29.50 per kg.
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