Government wheat sale expected to start from next month

26-Aug-2024 11:10 AM

New Delhi. The process of weekly e-auction of wheat from the central pool under the Open Market Sale Scheme (OMSS) is likely to start from next month (September).

According to trade analysts, looking at the current stock position in government warehouses, it seems that adequate quantity of wheat can be supplied in the festive season.

Usually, due to strong demand, the price of wheat goes up during the festive season and hence the government may feel the dire need to unload its stock in the domestic market.

At present, there is a stock of 58.90 lakh tonnes of wheat in the central pool, which is much higher than the minimum buffer stock of 205.20 lakh tonnes required for October 1, 2024. It is understood that in the initial phase, the government may fix a stock of 25 lakh tonnes of wheat for sale under OMSS.

Bulk buyers-floor millers and processors are in dire need of government wheat right now because there is limited arrival of this important food grain in the domestic markets and the price is running. On the other hand,

the government is also ready in principle to sell the limited quantity of wheat present in its stock and has also fixed the reserve price of wheat for this. But in practice, the process of its sale has not started yet. In the last financial year,

during 28 June 2023 to 28 February 2024, a record sale of more than 94 lakh tonnes of wheat was done from the central pool.

The government has realized that despite imposing storage limits, neither the supply and availability of wheat in the open market could increase nor could the prices soften. Now only the sale of government stock can have some psychological effect on the market.