Government's smart decision on wheat sale under OMSS

11-Jul-2024 01:35 PM

New Delhi. The industry and trade sector is not only satisfied with the decision taken by the Central Government to sell wheat under the Open Market Sale Scheme (OMSS) but is also considering it a smart move.

The government has fixed the minimum reserve or base price of wheat at Rs 2325 per quintal for FQ and Rs 2300 per quintal for URS, which is higher than the minimum support price of Rs 2275 per quintal. 

According to an industry analyst, this decision of the government is a welcome step for the flour millers and they were eagerly waiting for it.

This time freight will be added separately for wheat, which was already being demanded by the industry. Last time the price of wheat was kept uniform at the all India level, due to which the sales of private traders of North India were reduced because the flour millers / processors of South India were getting the opportunity to buy wheat directly from the Food Corporation at the same price. With no difference in prices,

wheat sales under OMSS reached a new record level in 2023-24. But this time, traders will get the opportunity to do their business independently like in previous years because on one hand the reserve price of wheat has been kept high and secondly, freight charges will be levied separately on it.

This move of the government is quite clever and due to this, wheat of private traders will also come in the market in greater quantity, which will reduce the burden on the wheat stock of the Food Corporation. 

According to another analyst, it is true that the selling price of wheat of Food Corporation of India is below the prevailing local price of this important grain in every region.

If the Food Corporation allocates adequate quantity of wheat in non-producing states, then the market can stabilize to a great extent, otherwise the trend of boom and strengthening can continue again slowly in the market.