All eyes on government wheat and rice sales

11-Jul-2024 05:33 PM

New Delhi. In view of the strong demand from flour millers / processors, the government has finally decided to start the open market sale scheme.

The reserve price of wheat has been fixed at Rs 2300 and Rs 2325 per quintal and rice at Rs 2800 per quintal.

Due to additional freight, the price of wheat will not be the same across the country this time. This scheme is expected to start again from August 2024.

The decision on how much stock of wheat will be unloaded is also going to be taken soon. Food Corporation of India has already estimated this.

184 lakh tonnes of wheat is required for distribution under various schemes for the whole year. It is necessary to have a stock of at least about 75 lakh tonnes of wheat in the central pool on April 1.

The Food Corporation has a stock of 282.60 lakh tonnes of wheat and 485 lakh tonnes of rice (which includes paddy equivalent to 237 lakh tonnes of rice).

Looking at these figures, it seems that the Food Corporation will not have a huge stock of wheat available to unload in OMSS, while its price will also remain high for the buyers.

The important thing is that the demand and consumption of wheat is going to increase significantly in the coming months, while the off season of its supply is also about to start.

The market price of wheat often becomes high and sharp during January to March. At that time, the government will have to keep a good stock of wheat to control the prices.