Centre to offload 50 lakh metric tonnes of wheat to open market

The move is significant as wheat and rice prices rise despite government measures and after the Centre’s bid to sell rice through e-auctions received lukewarm market response.

According to the Department of Consumer Affairs website, the all-India daily average retail price of wheat and wholesale price of wheat have risen by 6.12 per cent and 7.53 per cent respectively, compared to the year before. The all-India daily retail and wholesale prices of rice were also higher by 12.82 per cent and 12.79 per cent respectively.

The decision comes in the light of these developments.

The cost on account of reduction in the reserve price would be borne by the price stabilisation fund of the Department of Consumer Affairs. “Stocks are offloaded under OMSS-D for disposal of excess stocks, reducing the carrying cost of foodgrains, enhancing supply of foodgrains during lean season and deficit regions and to moderate market prices,” the statement said.

The data shows that in seven e-auctions conducted between June 28 and August 9, only 1,995 metric tonnes of rice and 8.21 lakh metric tonnes of wheat were sold under the OMMS-D. While wheat has witnessed demand, the FCI has found no takers for rice.