August 10, 2023
NEW DELHI – The Government of India has decided that the Food Corporation of India (FCI) shall offload 50 LMT of wheat and 25 LMT of rice in the open market in a phased manner under the Open Market Sale Scheme (Domestic) [OMSS(D)] for sale through E-auction.
In view of the experience of the past five e-auctions for rice by the FCI, it has been decided that the reserve price will be brought down by Rs 200/qtl and the effective price now will be Rs 2,900/qtl. The cost on account of reduction in the reserve price will be borne from the Price Stabilization Fund maintained by the Department of Consumer Affairs.
In one year, the wheat prices have gone up by 6.77 per cent in the retail market and 7.37 per cent in the wholesale market. Similarly, the rice prices in the retail market have gone up by 10.63 and 11.12 per cent in the wholesale market.
Keeping in view the benefit of over 140 crore citizens of the country, the government has taken this decision to offer wheat and rice under OMSS (D) to private parties for increasing availability, moderate the rise in market prices and control food inflation. However, it is relevant to mention that the Government is also providing foodgrains to NFSA beneficiaries as per their entitlement free of cost as committed under the Pradhan Mantri Garib Kalyan Anna Yojna (PM-GKAY) w.e.f. 1 January 2023.
Stocks are offloaded under OMSS (D) from time to time to achieve multiple objectives including, inter-alia, disposal of excess stocks, reducing the carrying cost of foodgrains, enhancing supply of foodgrains during lean season & deficit regions and to moderate the market prices.
In the calendar year 2023, wheat & rice are being offloaded by the FCI in a phased manner as per reserve prices fixed by the Government.