The Central Government has directed the Food Corporation of India (FCI) to release 25 lakh tonnes of wheat from its buffer stock under the Open Market Sale Scheme (OMSS).

This decision comes in response to the challenges faced by millers and processors due to complex supply and availability issues in major wholesale markets. It also aims to address the ongoing rise in wheat prices and help control food inflation.

The wheat will be sold through weekly e-auctions to flour millers, wheat product manufacturers, processors, and end users, and will be available until March 31, 2025.

The reserve price for the wheat has been set at Rs 2325 per quintal for General Average Quality (FAQ) and Rs 2300 per quintal for Under-Rated Wheat (URS), consistent with previous seasons, including the 2024-25 Rabi Marketing Season.

The decision to sell wheat under OMSS is driven by the high and rising domestic market prices, which have crossed Rs 3000 per quintal in many mandis, including Delhi.

This surge in wheat prices has also caused a significant increase in the cost of wheat-based products, leading to consumer difficulties.

In addition to this, the government had already allocated 35 lakh tonnes of wheat for free distribution under the Public Distribution System (PDS) in 10 states where distribution had been halted earlier.

The government also introduced a sale of flour under the brand name "Bharat" at Rs 300 per 10 kg, but the continued pressure on millers and processors led to the decision to release wheat under OMSS.